Cinemark Holdings Inc (CNK)
Working capital 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 current assets | US$ in thousands | 259,700 | 34,700 | 31,000 | 35,600 | 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 |
| Total current liabilities | US$ in thousands | 743,300 | 1,156,500 | 780,500 | 664,000 | 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 |
| 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, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,984,100K ÷ ($259,700K – $743,300K)
= —
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. For Cinemark Holdings Inc, the working capital turnover has fluctuated over the years. In June 2020, the ratio was high at 14.16, indicating that the company was able to generate $14.16 in revenue for every $1 of working capital invested.
However, in the following quarters, the working capital turnover ratio decreased significantly, reaching a low of 1.34 in March 2021. This suggests that the company's working capital was not being efficiently utilized to generate sales during that period. In the subsequent quarters, the ratio improved, indicating better efficiency in working capital management.
Notably, in December 2022, the working capital turnover ratio spiked to 40.35, reflecting a significant improvement in the company's ability to generate sales relative to its working capital. This could indicate more effective utilization of resources or a boost in sales efficiency during that period.
As of the last available data in December 2023, the working capital turnover ratio was at 8.28, which suggests that Cinemark Holdings Inc was still efficiently utilizing its working capital to generate sales revenue, albeit not at the same level as seen in December 2022.
Overall, it is crucial for the company to monitor and manage its working capital turnover ratio effectively to ensure optimal utilization of resources and sustained revenue generation efficiency.