Boyd Gaming Corporation (BYD)

Boyd Gaming Corporation's liquidity ratios show a declining trend over the years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, decreased from 1.24 in 2020 to 0.90 in 2024. This downward trend indicates a potential weakening in the company's short-term liquidity position.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also declined from 0.99 in 2020 to 0.51 in 2024. This indicates a decrease in Boyd Gaming's ability to meet its short-term liabilities with its most liquid assets.

The cash ratio, which focuses solely on the company's cash and cash equivalents to cover current liabilities, stayed consistent at 0.51 from 2022 to 2024. While the cash ratio remained stable, the overall trend of declining current and quick ratios suggests that Boyd Gaming Corporation may be facing challenges in maintaining adequate levels of liquid assets to meet its short-term obligations.

---

Additional liquidity measure

Boyd Gaming Corporation's cash conversion cycle has shown a consistent decreasing trend from 7.96 days as of December 31, 2020, to 4.12 days as of December 31, 2024. This indicates that the company has been able to efficiently manage its working capital and convert its inventory and accounts receivable into cash at a faster pace over the years. A decreasing cash conversion cycle is generally a positive sign, as it implies that Boyd Gaming has been able to streamline its operations, improve inventory turnover, and collect receivables more promptly. This efficiency in working capital management can positively impact the company's liquidity and overall financial health.