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.