Boyd Gaming Corporation (BYD)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.31 | 4.09 | 3.88 | 3.98 | 4.22 | 4.47 | 4.74 | 4.93 | 5.17 | 5.30 | 5.10 | 5.05 | 5.12 | 5.33 | 5.82 | 7.60 | 7.96 | 7.02 | 6.80 | 4.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 4.31 | 4.09 | 3.88 | 3.98 | 4.22 | 4.47 | 4.74 | 4.93 | 5.17 | 5.30 | 5.10 | 5.05 | 5.12 | 5.33 | 5.82 | 7.60 | 7.96 | 7.02 | 6.80 | 4.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.31 + — – —
= 4.31
The cash conversion cycle for Boyd Gaming Corporation has shown a decreasing trend over the analyzed periods, indicating efficiency in managing its cash flows. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash received from sales.
In March 2020, the cash conversion cycle was 4.83 days, and it gradually increased to 7.96 days by December 2020. This indicates that Boyd Gaming Corporation took longer to convert its investments into cash during this period. However, from March 2021 onwards, the company's cash conversion cycle started to improve, reaching its lowest point of 3.88 days by June 2024.
A decreasing cash conversion cycle suggests that Boyd Gaming Corporation was able to streamline its operations, manage its inventory efficiently, and collect receivables faster, leading to improved cash flows and liquidity. This trend implies better working capital management and potentially increased profitability for the company.
Overall, the consistent reduction in the cash conversion cycle over the analyzed periods reflects Boyd Gaming Corporation's efforts to enhance its cash management processes and optimize its working capital, which are crucial for sustaining financial health and operational efficiency.
Peer comparison
Dec 31, 2024