Boyd Gaming Corporation (BYD)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -38.32 | -49.76 | -35.96 | -23.59 | -26.94 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.48 + 14.33 – 63.13
= -38.32
The cash conversion cycle for Boyd Gaming Corp. has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved to -8.26 days, indicating that Boyd Gaming is efficiently managing its cash flows. This improvement is a positive sign for the company's liquidity and operational efficiency.
In the previous years, the cash conversion cycle for Boyd Gaming was also negative, indicating that the company was able to convert its investments in inventory into cash quickly. The trend shows that in 2022 and 2021, the company's cash conversion cycle was moderately negative at -13.67 days and -11.19 days, respectively.
However, in 2020 and 2019, the cash conversion cycle was more negative at -17.17 days and -7.85 days, respectively, suggesting that the company was able to convert its investments in inventory into cash at a faster rate during those years.
Overall, the negative cash conversion cycle for Boyd Gaming Corp. indicates efficient management of working capital and effective utilization of cash resources. However, the fluctuation in the cycle over the years may signal changes in operating efficiency or shifts in the company's business operations that should be further analyzed.
Peer comparison
Dec 31, 2023