Cinemark Holdings Inc (CNK)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 259,700 | 644,000 | 270,100 | 874,400 | 892,747 |
| Total current liabilities | US$ in thousands | 743,300 | 253,200 | 214,800 | 769,100 | 606,441 |
| Current ratio | 0.35 | 2.54 | 1.26 | 1.14 | 1.47 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $259,700K ÷ $743,300K
= 0.35
The current ratio of Cinemark Holdings Inc has fluctuated over the years according to the provided data. As of December 31, 2020, the current ratio stood at 1.47, indicating that the company had $1.47 in current assets to cover each dollar of current liabilities. However, by December 31, 2021, the current ratio decreased to 1.14, suggesting a potential strain on the company's liquidity position as it had fewer current assets relative to current liabilities.
By December 31, 2022, the current ratio improved to 1.26, which was a positive sign, indicating a better ability to meet short-term obligations. The following year, on December 31, 2023, the current ratio significantly increased to 2.54, showcasing a strong liquidity position with ample current assets to cover current liabilities.
However, by December 31, 2024, the current ratio dropped sharply to 0.35, which could be a cause for concern as it indicates that Cinemark Holdings Inc may have insufficient current assets to meet its short-term obligations. Overall, the trend in the current ratio highlights fluctuations in the company's liquidity position over the years, underscoring the importance of closely monitoring liquidity management strategies.