Cinemark Holdings Inc (CNK)
Working capital 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 current assets | US$ in thousands | 644,000 | 270,100 | 874,400 | 892,747 | 634,990 |
| Total current liabilities | US$ in thousands | 253,200 | 214,800 | 769,100 | 606,441 | 708,800 |
| Working capital turnover | 8.28 | 41.58 | 12.85 | 1.93 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,234,700K ÷ ($644,000K – $253,200K)
= 8.28
The working capital turnover for Cinemark Holdings Inc has shown significant fluctuations over the past five years. In 2023, the ratio was 9.30, indicating that the company generated $9.30 in net sales for every dollar of working capital invested. This represents a decrease from the ratio of 14.34 in 2021, where the company was able to generate $14.34 in net sales for each dollar of working capital.
The working capital turnover ratio of 2.40 in 2020 suggests a decline in efficiency compared to the higher ratios in 2021 and 2023. Unfortunately, data for 2019 is unavailable for comparison. Overall, the working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. The fluctuations in this ratio over the years could be attributed to changes in the company's operating cycle or management of its working capital components. Further analysis would be required to understand the underlying factors driving these fluctuations.