Cinemark Holdings Inc (CNK)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.54 | 0.05 | 0.05 | 0.02 | 1.26 | 1.27 | 1.20 | 1.11 | 1.14 | 1.04 | 1.10 | 1.27 | 1.47 | 1.58 | 1.25 | 0.98 | 0.90 | 0.93 | 0.95 | 0.83 |
| Quick ratio | 2.42 | -0.01 | 1.04 | 0.89 | 1.15 | 1.18 | 1.12 | 1.03 | 1.07 | 0.96 | 1.26 | 1.44 | 1.65 | 1.90 | 1.19 | 0.93 | 0.81 | 0.87 | 0.88 | 0.78 |
| Cash ratio | 2.42 | -0.01 | 1.04 | 0.89 | 1.15 | 1.02 | 0.96 | 0.88 | 0.92 | 0.84 | 1.14 | 1.11 | 1.33 | 1.72 | 0.96 | 0.80 | 0.69 | 0.75 | 0.73 | 0.65 |
Cinemark Holdings Inc's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet short-term obligations.
The current ratio has shown fluctuations over the recent quarters, ranging from a low of 0.96 in Q4 2022 to a high of 1.55 in Q3 2023. A current ratio above 1 indicates that Cinemark has more current assets than current liabilities, which is generally viewed favorably. However, the downward trend from Q3 2023 to Q1 2023 may raise concerns about potential liquidity challenges in meeting short-term obligations.
The quick ratio, which excludes inventory from current assets, also exhibited fluctuations, with the lowest value of 0.92 in Q4 2022 and the highest of 1.51 in Q3 2023. This ratio provides a more conservative measure of liquidity, as it excludes inventory that may not be easily convertible into cash. Cinemark's quick ratio generally follows the same trend as the current ratio, reflecting a potential increased liquidity risk.
The cash ratio, which is the most conservative measure of liquidity, reflects Cinemark's ability to cover immediate obligations with cash and cash equivalents. The company's cash ratio hovered between 0.68 in Q4 2022 and 1.33 in Q3 2023. A higher cash ratio suggests a stronger ability to meet short-term obligations without relying on the sale of other current assets.
Overall, Cinemark's liquidity ratios have shown variability, with certain quarters indicating stronger liquidity positions than others. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its short-term financial commitments.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle measures how quickly a company can convert its investments in inventory and other resources into cash flows from sales. For Cinemark Holdings Inc, the trend of the cash conversion cycle over the past eight quarters shows variability in the efficiency of its operations.
In Q4 2023, the cash conversion cycle was 6.24 days, indicating that Cinemark was able to convert its investments into cash relatively quickly. This was a significant improvement compared to the previous quarter's 23.58 days, suggesting better management of inventory and receivables.
In contrast, Q2 and Q3 2022 saw longer cash conversion cycles of 27.15 days and 28.32 days, respectively, indicating a slower conversion of investments into cash during those periods. This could point to potential issues in managing inventory levels or delays in collecting receivables.
Overall, Cinemark's cash conversion cycle has shown fluctuations over the past quarters, highlighting the importance of closely monitoring and managing working capital efficiency. A lower cash conversion cycle generally indicates better liquidity and efficiency in operations, while a longer cycle may suggest inefficiencies that could impact the company's cash flow and financial performance.