Cinemark Holdings Inc (CNK)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 229,900 | 928,300 | 788,800 | 788,600 | 612,400 | 10,800 | 758,000 | 650,100 | 247,200 | 631,900 | 695,100 | 568,600 | 707,300 | 543,013 | 595,884 | 512,828 | 655,338 | 825,706 | 571,755 | 479,399 |
| Short-term investments | US$ in thousands | — | — | 7,900 | 7,900 | 9,700 | -19,600 | 14,300 | 11,200 | — | 9,900 | 4,300 | — | 39 | — | 147,629 | 145,458 | 151,962 | 250,434 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | 97,800 | 112,300 | 99,400 | 115,473 | 75,141 | 74,693 | 198,390 | 190,416 | 108,750 | 135,101 | 76,935 |
| Total current liabilities | US$ in thousands | 743,300 | 1,156,500 | 780,500 | 664,000 | 253,200 | 651,900 | 744,700 | 740,900 | 214,800 | 628,400 | 725,800 | 645,600 | 769,100 | 642,777 | 651,722 | 594,510 | 606,441 | 623,877 | 596,119 | 600,427 |
| Quick ratio | 0.31 | 0.80 | 1.02 | 1.20 | 2.46 | -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 |
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, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing the trend of Cinemark Holdings Inc's quick ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The quick ratio ranged from a low of -0.01 on September 30, 2023, to a high of 2.46 on December 31, 2023.
Overall, the quick ratio improved over the period, reflecting a healthier liquidity position for the company. Specifically, the ratio increased from 0.93 on March 31, 2020, to 1.20 on March 31, 2024. However, there were instances of fluctuations in the ratio, such as the decrease from 1.90 on September 30, 2020, to 0.96 on September 30, 2021.
Despite these fluctuations, the company maintained a quick ratio above 1 for most of the period, indicating that Cinemark Holdings Inc had sufficient liquid assets to meet its short-term obligations. Investors and analysts should continue to monitor the quick ratio to assess the company's liquidity and short-term financial health.