Cinemark Holdings Inc (CNK)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,984,100 | 3,076,300 | 2,994,200 | 3,202,300 | 3,234,700 | 2,768,400 | 2,582,100 | 2,379,800 | 2,231,500 | 2,407,057 | 2,153,212 | 1,706,333 | 1,352,964 | 823,049 | 461,972 | 214,925 | 656,796 | 1,347,357 | 2,104,323 | 3,027,775 |
| Total assets | US$ in thousands | 1,127,300 | 1,581,400 | 1,576,400 | 1,586,700 | 4,655,900 | 1,583,800 | 1,598,000 | 1,575,100 | 4,623,300 | 4,850,500 | 5,004,000 | 5,024,300 | 5,230,600 | 5,078,570 | 5,212,820 | 5,296,950 | 5,562,920 | 5,802,610 | 5,690,120 | 5,632,890 |
| Total asset turnover | 2.65 | 1.95 | 1.90 | 2.02 | 0.69 | 1.75 | 1.62 | 1.51 | 0.48 | 0.50 | 0.43 | 0.34 | 0.26 | 0.16 | 0.09 | 0.04 | 0.12 | 0.23 | 0.37 | 0.54 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,984,100K ÷ $1,127,300K
= 2.65
Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover ratio indicates better asset utilization.
For Cinemark Holdings Inc, the total asset turnover ratio has fluctuated over the quarters. It was relatively low in the first half of 2020, ranging from 0.12 to 0.37, indicating that the company was not effectively utilizing its assets to generate sales during that period.
However, there was a significant improvement in the total asset turnover ratio starting from the first quarter of 2023, where the ratio surged to 1.51 and continued to increase in the following quarters, reaching a peak of 2.65 by the end of December 2024. This sharp increase suggests that Cinemark was able to generate significantly higher revenue relative to its total assets during this period.
Overall, the trend in Cinemark's total asset turnover ratio indicates a significant improvement in asset efficiency and sales generation from 2023 onwards. This could imply better operational management and strategic decisions leading to increased revenue generation.