Cinemark Holdings Inc (CNK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 612,400 | 247,200 | 707,300 | 655,338 | 488,313 |
| Short-term investments | US$ in thousands | — | — | 39 | 151,962 | — |
| Total current liabilities | US$ in thousands | 253,200 | 214,800 | 769,100 | 606,441 | 708,800 |
| Cash ratio | 2.42 | 1.15 | 0.92 | 1.33 | 0.69 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($612,400K
+ $—K)
÷ $253,200K
= 2.42
The cash ratio of Cinemark Holdings Inc has shown fluctuations over the past five years. As of December 31, 2023, the cash ratio stands at a healthy 1.23, indicating that the company has $1.23 in cash and cash equivalents for every $1 of current liabilities. This suggests that Cinemark Holdings Inc has a strong ability to cover its short-term obligations with its readily available cash resources.
Comparing this to previous years, there has been a significant improvement from the prior year, where the cash ratio was 0.68 on December 31, 2022. This upward trend indicates that the company has enhanced its liquidity position and ability to meet its current liabilities more effectively.
Looking further back, the cash ratio was 0.97 on December 31, 2021, and 1.14 on December 31, 2020, demonstrating some fluctuations in liquidity levels over these periods. However, the current ratio of 1.23 on December 31, 2023, surpasses the ratios from these earlier years, suggesting a stronger financial position in terms of liquidity for Cinemark Holdings Inc.
It is worth noting that on December 31, 2019, the cash ratio was 0.74, indicating a lower level of liquidity compared to the most recent period. The improvement from the 2019 level to the current ratio highlights the company's efforts to enhance its cash position and effectively manage its short-term obligations.
In conclusion, the upward trend in the cash ratio of Cinemark Holdings Inc signifies a positive liquidity position and an improved ability to meet its current liabilities. This trend reflects well on the company's financial management and liquidity strategies in recent years.