Cinemark Holdings has a quick ratio of 1.42. It generally indicates good short-term financial strength.
The historical rank and industry rank for Cinemark Holdings's Quick Ratio or its related term are showing as below:
CNK'
s Quick Ratio Range Over the Past 10 Years
Min: 0.87 Med: 1.39 Max: 1.76
Current: 1.42
During the past 13 years, Cinemark Holdings's highest Quick Ratio was 1.76. The lowest was 0.87. And the median was 1.39.
CNK's Quick Ratio is ranked worse than 51.52% of 1056
companies
in the Media - Diversified industry
Industry Median: 1.45
vs CNK: 1.42
Cinemark Holdings Quick Ratio Historical Data
The historical data trend for Cinemark Holdings's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cinemark Holdings's Quick Ratio
For the Entertainment subindustry, Cinemark Holdings's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cinemark Holdings's Quick Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cinemark Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cinemark Holdings's Quick Ratio falls into.
Cinemark Holdings Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Cinemark Holdings's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cinemark Holdings (NYSE:CNK) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Cinemark Holdings Quick Ratio Related Terms
Thank you for viewing the detailed overview of Cinemark Holdings's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cinemark Holdings (Cinemark Holdings) Business Description
Cinemark Holdings Inc is geographically diverse operators in the motion picture exhibition industry in the United States. The company operates in around 518 theatres and 5,847 screens in the United States and Latin America. The company generates revenue from filmed entertainment box office receipts and concession sales, with additional revenue from screen advertising, screen rental and other revenue streams, such as transactional fees, vendor marketing promotions, studio trailer placements, meeting rentals and electronic video games located in some of the theatres. Majority of Cinemark's theaters are located in midsize cities or suburbs of large cities.
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