Cinemark Holdings Inc (CNK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 612,400 | 247,200 | 707,300 | 655,338 | 488,313 |
| Short-term investments | US$ in thousands | — | — | 39 | 151,962 | — |
| Receivables | US$ in thousands | — | — | 115,473 | 190,416 | 87,804 |
| Total current liabilities | US$ in thousands | 253,200 | 214,800 | 769,100 | 606,441 | 708,800 |
| Quick ratio | 2.42 | 1.15 | 1.07 | 1.65 | 0.81 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($612,400K
+ $—K
+ $—K)
÷ $253,200K
= 2.42
The quick ratio of Cinemark Holdings Inc has exhibited some fluctuations over the past five years. In 2019, the quick ratio was at a relatively low level of 0.87, indicating a potential liquidity concern as the company had limited immediate assets to cover its short-term liabilities.
However, there was a significant improvement in 2020, with the quick ratio increasing to 1.45, suggesting a healthier liquidity position as the company had more assets readily available to meet its short-term obligations. This improvement could be attributed to better management of current assets or a reduction in current liabilities.
In 2021, the quick ratio slightly declined to 1.12, indicating a slight decrease in the company's ability to cover its short-term liabilities with its quick assets alone. Nonetheless, a quick ratio above 1 generally suggests that Cinemark Holdings Inc is in a comfortable position to meet its immediate financial obligations.
In 2022, the quick ratio dropped to 0.92, signaling a potential liquidity strain as the company may not have sufficient quick assets to cover its short-term liabilities. This decrease could raise concerns about the company's ability to meet its immediate financial commitments.
The most recent data available for 2023 shows a quick ratio of 1.42, which represents an improvement from the previous year. This increase indicates that Cinemark Holdings Inc has enhanced its liquidity position, with a more favorable ability to cover its short-term obligations with its quick assets.
Overall, despite some fluctuations, the general trend of the quick ratio for Cinemark Holdings Inc suggests a varying but mostly adequate ability to meet its short-term financial obligations over the past five years. It is crucial for the company to maintain a strong quick ratio to ensure its financial stability and ability to address any unforeseen liquidity challenges.