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.
Peer comparison
Dec 31, 2023