Cinemark Holdings Inc (CNK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 177.07 | 89.80 | 35.83 | 13.33 | 10.49 |
| Days of sales outstanding (DSO) | days | — | — | — | 31.15 | 126.01 |
| Number of days of payables | days | — | — | — | 65.34 | 58.84 |
| Cash conversion cycle | days | 177.07 | 89.80 | 35.83 | -20.86 | 77.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 177.07 + — – —
= 177.07
The cash conversion cycle of Cinemark Holdings Inc has exhibited fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 77.66 days, indicating that it took approximately 77.66 days for Cinemark Holdings Inc to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle had turned negative at -20.86 days. A negative cash conversion cycle could suggest that the company was able to collect cash from customers before having to pay its suppliers, potentially indicating efficient management of working capital.
Subsequently, by December 31, 2022, the cash conversion cycle increased to 35.83 days, possibly indicating a longer time period for Cinemark Holdings Inc to convert its assets into cash compared to the previous year.
Moving forward to December 31, 2023, the cash conversion cycle further extended to 89.80 days, indicating a longer operating cycle and potentially highlighting challenges in efficiently managing inventory and receivables.
As of the most recent data available, December 31, 2024, the cash conversion cycle increased significantly to 177.07 days, signifying a notable delay in converting investments into cash and potentially raising concerns about liquidity management.
Overall, the fluctuations in Cinemark Holdings Inc's cash conversion cycle over the years suggest varying efficiency in managing working capital, and further analysis would be beneficial to understand the underlying factors contributing to these changes and their impact on the company's cash flow and operational performance.