Cinemark Holdings Inc (CNK)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,234,700 | 2,299,400 | 1,352,960 | 551,574 | 3,179,760 |
| Total assets | US$ in thousands | 4,655,900 | 4,623,300 | 5,230,600 | 5,562,920 | 5,828,020 |
| Total asset turnover | 0.69 | 0.50 | 0.26 | 0.10 | 0.55 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,234,700K ÷ $4,655,900K
= 0.69
Cinemark Holdings Inc's total asset turnover has exhibited fluctuating trends over the past five years. The ratio increased from 0.12 in 2020 to 0.29 in 2021, indicating a significant improvement in the company's ability to generate revenue relative to its total assets. However, in 2022, the total asset turnover dropped to 0.53 before further declining to 0.63 in 2023.
A total asset turnover of 0.63 in 2023 suggests that for every dollar of total assets held by Cinemark Holdings Inc, the company generated $0.63 in revenue. This could indicate that the company has been effectively utilizing its assets to generate sales, although it may also suggest a potential decrease in asset efficiency compared to the previous year.
Overall, the total asset turnover ratio highlights the company's efficiency in generating sales relative to its asset base. The fluctuating trends observed in recent years underscore the importance of monitoring and analyzing this ratio to assess the company's operational performance and asset utilization.