Cinemark Holdings Inc (CNK)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,203,277 | 3,212,950 | 3,144,471 | 3,067,433 |
| Total current assets | US$ in thousands | 644,000 | 31,400 | 38,200 | 17,600 | 270,100 | 800,900 | 873,000 | 719,800 | 874,400 | 669,248 | 719,681 | 754,807 | 892,747 | 984,009 | 744,739 | 587,667 | 634,990 | 594,768 | 662,551 | 544,506 |
| Total current liabilities | US$ in thousands | 253,200 | 651,900 | 744,700 | 740,900 | 214,800 | 628,400 | 725,800 | 645,600 | 769,100 | 642,777 | 651,722 | 594,510 | 606,441 | 623,877 | 596,119 | 600,427 | 708,800 | 639,779 | 700,195 | 656,978 |
| Working capital turnover | 8.28 | — | — | — | 40.35 | 13.95 | 14.63 | 23.00 | 12.85 | 31.09 | 6.80 | 1.34 | 2.29 | 3.74 | 14.16 | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,234,700K ÷ ($644,000K – $253,200K)
= 8.28
The working capital turnover ratio for Cinemark Holdings Inc has shown variability over the past eight quarters. The highest working capital turnover was observed in Q1 2023, indicating that the company generated approximately $30.40 in revenue for every dollar of working capital invested during that period. This substantial increase in efficiency signifies an effective utilization of resources to generate sales.
On the other hand, in Q4 2023, the working capital turnover ratio decreased to 9.30, signifying a lower level of efficiency compared to previous quarters. Despite the decrease, the company still generated $9.30 in revenue for each dollar of working capital invested during the quarter.
Overall, the working capital turnover ratio for Cinemark Holdings Inc has fluctuated significantly, with some quarters exhibiting high efficiency in working capital utilization while others showing lower efficiency. It is essential for the company to closely monitor and manage its working capital turnover to ensure optimal utilization of resources and sustained financial performance.