Boyd Gaming Corporation (BYD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 34.84 | 28.77 | 31.96 | 35.64 | 33.31 |
| Receivables turnover | 25.47 | 30.64 | 34.37 | 36.40 | 50.50 |
| Payables turnover | 5.78 | 4.91 | 6.29 | 8.32 | 8.09 |
| Working capital turnover | — | — | — | 15.41 | — |
Boyd Gaming Corp.'s activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.
1. Inventory Turnover:
Boyd Gaming Corp.'s inventory turnover ratio has shown fluctuations over the past five years, ranging from 45.86 to 83.12. The increasing trend in recent years indicates that the company is managing its inventory more efficiently, turning over its inventory more frequently. This could be a result of better inventory management practices or increased sales volume.
2. Receivables Turnover:
The receivables turnover ratio has also varied over the same period, ranging from 26.44 to 55.01. The declining trend in the receivables turnover ratio may suggest that Boyd Gaming Corp. is taking longer to collect payments from customers. This could be due to changes in credit policies or difficulties faced by customers in making payments.
3. Payables Turnover:
Boyd Gaming Corp.'s payables turnover ratio has fluctuated between 10.71 and 19.08 over the past five years. The increasing trend in payables turnover indicates that the company is paying its suppliers more frequently. This could signal efficient cash management or negotiating favorable credit terms with suppliers.
4. Working Capital Turnover:
The absence of data for the working capital turnover ratio in the recent years indicates that Boyd Gaming Corp. may not have provided the necessary information for analysis or that the calculation of this ratio may not be relevant for the company's current operations.
Overall, Boyd Gaming Corp.'s activity ratios reflect varying levels of efficiency in managing its inventory, receivables, and payables over the past five years. Continued monitoring of these ratios can help assess the company's operational performance and effectiveness in utilizing its resources.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.48 | 12.69 | 11.42 | 10.24 | 10.96 |
| Days of sales outstanding (DSO) | days | 14.33 | 11.91 | 10.62 | 10.03 | 7.23 |
| Number of days of payables | days | 63.13 | 74.36 | 58.00 | 43.86 | 45.12 |
Activity ratios provide insight into how efficiently a company is managing its assets and operations.
1. Days of Inventory on Hand (DOH): The trend in Boyd Gaming Corp.'s DOH indicates an improvement in managing inventory levels, with the number of days decreasing from 7.96 days in 2020 to 4.39 days in 2023. This suggests that the company is selling its inventory more quickly, which could result in lower holding costs and improved cash flow.
2. Days of Sales Outstanding (DSO): Boyd Gaming Corp.'s DSO has been steadily increasing over the years, indicating that the company is taking longer to collect payments from customers. The increase from 6.64 days in 2019 to 13.81 days in 2023 suggests a potential liquidity challenge if not managed effectively. Management should focus on improving collection processes to reduce DSO.
3. Number of Days of Payables: The number of days of payables for Boyd Gaming Corp. fluctuated over the years but has generally been trending upwards. A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, which can be beneficial in managing cash flow. However, excessively long payables periods may strain supplier relationships and impact credit terms.
Overall, while Boyd Gaming Corp. has improved its inventory management, the increasing DSO requires attention to optimize cash flow, and the fluctuating payables periods need careful monitoring to strike a balance between managing liquidity and supplier relationships.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.42 | 1.43 | 1.28 | 0.77 | 1.14 |
| Total asset turnover | 0.57 | 0.54 | 0.49 | 0.30 | 0.46 |
The analysis of Boyd Gaming Corp.'s long-term activity ratios over the past five years reveals the following trends:
1. Fixed asset turnover:
- Boyd Gaming Corp.'s fixed asset turnover has varied over the period, ranging from a low of 0.86 in 2020 to a high of 1.48 in 2022.
- The company's fixed asset turnover indicates how efficiently it is utilizing its fixed assets to generate revenue.
- A ratio above 1 suggests that Boyd Gaming Corp. is generating more revenue per dollar of fixed assets, which is generally favorable.
- The slight fluctuations in the fixed asset turnover ratio indicate some variability in the company's efficiency in utilizing its fixed assets over the years.
2. Total asset turnover:
- Similar to the fixed asset turnover, Boyd Gaming Corp.'s total asset turnover has also shown variability over the five-year period, ranging from 0.33 in 2020 to 0.60 in 2023.
- The total asset turnover ratio measures how efficiently the company is generating revenue from its total assets.
- An increasing total asset turnover ratio can indicate improved efficiency in generating sales relative to the size of the asset base.
- Boyd Gaming Corp.'s total asset turnover has shown an increasing trend over the years, which suggests the company is generating more revenue per dollar of total assets.
In conclusion, Boyd Gaming Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, indicate varying levels of efficiency in utilizing fixed assets and total assets to generate revenue over the five-year period. The company's ability to improve its asset turnover ratios over time signifies an enhancement in operational efficiency and asset utilization, which can be a positive sign for stakeholders.