Cinemark Holdings Inc (CNK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 229,900 | 612,400 | 247,200 | 707,300 | 655,338 |
| Short-term investments | US$ in thousands | — | 9,700 | — | 39 | 151,962 |
| Receivables | US$ in thousands | — | — | — | 115,473 | 190,416 |
| Total current liabilities | US$ in thousands | 743,300 | 253,200 | 214,800 | 769,100 | 606,441 |
| Quick ratio | 0.31 | 2.46 | 1.15 | 1.07 | 1.65 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($229,900K
+ $—K
+ $—K)
÷ $743,300K
= 0.31
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Cinemark Holdings Inc's quick ratio has shown some fluctuations over the years, indicating changes in the company's liquidity position.
As of December 31, 2020, the quick ratio was 1.65, suggesting that Cinemark had $1.65 in liquid assets available to cover each dollar of its current liabilities. This indicates a healthy liquidity position at that time.
By December 31, 2021, the quick ratio dropped to 1.07, signaling a decrease in liquidity compared to the previous year. While still above 1, the decrease may raise concerns about the company's ability to meet its short-term obligations using its quick assets.
The quick ratio improved to 1.15 by December 31, 2022, showing a slight recovery in liquidity. However, the ratio increased significantly to 2.46 by December 31, 2023, indicating a substantial improvement in the company's ability to cover its short-term liabilities with its liquid assets.
However, there was a sharp decline in the quick ratio to 0.31 by December 31, 2024, suggesting a significant decrease in liquidity compared to the previous year. This low ratio may raise concerns about Cinemark's ability to meet its short-term obligations with its available liquid assets.
Overall, Cinemark's quick ratio has displayed variability over the years, reflecting changes in the company's liquidity position. It is crucial for investors and stakeholders to monitor these fluctuations to assess the company's financial health and its ability to meet its short-term obligations.