Cinemark Holdings Inc (CNK)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.94 | 70.13 | 65.52 | 20.79 | 17.11 | 13.56 | 11.84 | 12.97 | 13.48 | 12.66 | 13.15 | 12.60 | 10.67 | 13.03 | 10.84 | 10.08 | 12.26 | 10.83 | 13.03 | 11.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 14.83 | 19.04 | 21.26 | 31.15 | 33.32 | 59.01 | 336.92 | 105.82 | 29.46 | 23.43 | 9.27 | 10.00 | 8.16 | 12.57 | 10.62 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | 66.11 | — | — | — | 59.85 | — | — | — | 51.81 | — | — | — |
| Cash conversion cycle | days | 91.94 | 70.13 | 65.52 | 20.79 | 17.11 | 28.40 | 30.87 | 34.23 | -21.47 | 45.98 | 72.16 | 349.52 | 56.64 | 42.49 | 34.27 | 19.35 | -29.54 | 18.98 | 25.60 | 21.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.94 + — – —
= 91.94
The cash conversion cycle for Cinemark Holdings Inc fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 6.24 days, indicating an efficient cash management process. However, in Q3 2023, Q2 2023, and Q1 2023, the cash conversion cycle increased to 23.58 days, 27.15 days, and 23.10 days, respectively, suggesting a delay in converting investments in inventory into cash receipts from sales. This may indicate potential inefficiencies in managing inventory levels or collection processes during these quarters.
Comparing to the same quarters in the previous year, there was an improvement in the cash conversion cycle in Q4 2022, which decreased to 4.64 days. However, the cycle increased in Q3 2022, Q2 2022, and Q1 2022, reaching 22.09 days, 28.32 days, and 33.28 days, respectively. These findings suggest a cyclical pattern in Cinemark's cash conversion cycle performance over the given period, possibly influenced by factors such as seasonal variations in sales, inventory turnover rates, or payment terms with suppliers and customers.
Overall, further analysis and monitoring of the company's cash conversion cycle trends are recommended to identify underlying causes of fluctuations and implement strategies to optimize working capital management and enhance operational efficiency.