Boyd Gaming Corporation (BYD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.12 | 4.39 | 5.17 | 5.12 | 7.96 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 4.12 | 4.39 | 5.17 | 5.12 | 7.96 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.12 + — – —
= 4.12
Boyd Gaming Corporation's cash conversion cycle has been steadily decreasing over the years, indicating an improvement in its efficiency in managing its working capital. In the span of five years from December 31, 2020, to December 31, 2024, the cash conversion cycle has declined from 7.96 days to 4.12 days.
A decreasing cash conversion cycle suggests that Boyd Gaming Corporation is taking less time to convert its investments in inventory and receivables into cash. This trend is generally positive as it signifies that the company is able to generate cash more quickly from its operational activities.
The reduction in the cash conversion cycle could be attributed to effective inventory management, prompt collection of receivables, and efficient payment of payables. By optimizing these aspects of its working capital, Boyd Gaming Corporation is likely enhancing its liquidity position and overall financial performance.
Peer comparison
Dec 31, 2024