Boyd Gaming Corporation (BYD)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	12.72	15.42	16.04	16.58	15.99	15.67	15.02	14.78	14.46	14.13	14.58	15.98	12.37	12.12	11.70	8.97	10.96	—	52.16	17.35
Days of sales outstanding (DSO)	days	14.33	10.61	11.51	10.58	11.91	9.54	10.25	11.08	10.62	7.00	7.79	11.08	9.74	7.32	6.27	5.12	6.76	6.42	8.05	8.25
Number of days of payables	days	76.63	78.96	72.61	75.19	93.72	70.40	62.27	61.13	73.41	60.45	59.39	55.00	52.96	35.88	47.38	31.07	45.12	—	257.25	109.88
Cash conversion cycle	days	-49.58	-52.93	-45.05	-48.02	-65.81	-45.19	-37.01	-35.27	-48.34	-39.32	-37.02	-27.94	-30.86	-16.44	-29.41	-16.98	-27.41	6.42	-197.05	-84.29

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.72 + 14.33 – 76.63
= -49.58

The cash conversion cycle of Boyd Gaming Corp. has shown variations over the quarters presented in the data table. In Q4 2023, the company's cash conversion cycle improved to -8.26 days, indicating a shorter time taken to convert its investments in inventory and other resources into cash from sales and then back into cash from receivables. This improvement can be a positive sign of efficient working capital management.

Looking at the trend over the past quarters, Q2 2022 had the lowest cash conversion cycle of -6.42 days, suggesting a more efficient cash conversion process at that time. The cycles in Q3 and Q1 of 2022 and Q1 of 2023 were also in negative territory, indicating Boyd Gaming Corp.'s ability to quickly convert its assets into cash.

However, in Q4 2022, the cash conversion cycle was less favorable at -13.67 days, indicating a longer time spent in the cash conversion process during that period. This increase may warrant further investigation into potential inefficiencies in working capital management or changes in the company's operations.

Overall, the trend of negative cash conversion cycles suggests that Boyd Gaming Corp. has been effective in managing its working capital, efficiently selling inventory, collecting receivables, and managing payment cycles over the quarters reviewed. However, continued monitoring and analysis of the cash conversion cycle will be important to ensure ongoing efficiency and effectiveness in the company's cash flow management.