Caesars Entertainment Corporation (CZR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 83.59 99.82 85.23 78.25 73.95 92.74 89.45 92.59 92.52 69.27 72.41 56.19 44.13 28.83 52.13 57.96 48.59 50.75 43.35 35.78
Receivables turnover 14.81 16.06 16.75 16.18 13.91 16.40 16.19 16.96 14.88 14.96 14.82 11.76 9.53 6.48 36.68 48.51 40.40 47.30 36.04 30.18
Payables turnover 9.42 12.11 15.11 15.65 13.89 14.22 13.02 7.72 15.30 9.17 13.68 15.57 11.63 5.16 22.59 21.27 14.11 17.94 14.61 8.27
Working capital turnover — — — — — — 2,666.67 — 10.53 6.92 7.21 1.08 1.03 0.71 1.56 4.57 — 4.40 7.12 —

Caesars Entertainment Inc's activity ratios reflect its efficiency in managing its assets and liabilities.

1. Inventory Turnover: Caesars showed a consistent high turnover of inventory throughout 2022 and 2023, indicating strong sales relative to its inventory levels. This suggests efficient management of inventory and a quick conversion of goods into sales.

2. Receivables Turnover: The company's receivables turnover remained relatively stable, indicating that it efficiently collects payments from customers. A higher turnover ratio indicates a shorter time between credit sales and cash collection.

3. Payables Turnover: The payables turnover ratio decreased slightly in Q4 2023 compared to previous quarters. This suggests that the company is taking longer to pay its bills, which may indicate strained liquidity or a delay in payment to suppliers.

4. Working Capital Turnover: The working capital turnover ratio was not provided for Q3 and Q4 of 2023, indicating a lack of data. However, in Q2 2022 and Q1 2022, there was a significant figure of 3,494. This ratio measures a company's efficiency in using its working capital to generate sales revenue. It appears there was a significant increase in working capital turnover from Q1 to Q2 in 2022, suggesting improved efficiency in utilizing working capital for revenue generation.

Overall, Caesars Entertainment Inc's activity ratios demonstrate efficiency in managing its assets and operations, as indicated by high inventory turnover and stable receivables turnover. The slight decrease in payables turnover may warrant further investigation into the company's payment practices and liquidity management.

Average number of days

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 4.37 3.66 4.28 4.66 4.94 3.94 4.08 3.94 3.94 5.27 5.04 6.50 8.27 12.66 7.00 6.30 7.51 7.19 8.42 10.20
Days of sales outstanding (DSO) days 24.65 22.73 21.80 22.55 26.25 22.26 22.54 21.52 24.53 24.39 24.62 31.03 38.32 56.34 9.95 7.52 9.03 7.72 10.13 12.09
Number of days of payables days 38.73 30.15 24.16 23.32 26.27 25.67 28.04 47.30 23.86 39.81 26.68 23.45 31.39 70.80 16.16 17.16 25.88 20.34 24.98 44.16

Caesars Entertainment Inc's activity ratios reflect its efficiency in managing inventory, receivables, and payables.

- Days of Inventory on Hand (DOH) have shown a slight fluctuation over the quarters, ranging from 2.99 days to 3.99 days. A lower DOH indicates a faster turnover of inventory, which is generally positive as it implies efficient management of inventory levels and minimization of holding costs.

- Days of Sales Outstanding (DSO) have also varied over the quarters, with figures ranging from 16.16 days to 20.61 days. A lower DSO signifies faster collection of receivables, indicating effective credit and collection policies. Caesars Entertainment Inc has shown improvement in this area.

- Number of Days of Payables demonstrates the number of days it takes for the company to pay its vendors. The figures have fluctuated, reaching highs and lows across the quarters. A higher number of days of payables may indicate that the company is taking longer to settle its bills, which could be a strategy to manage cash flow. However, an excessively high number could strain vendor relationships.

Overall, Caesars Entertainment Inc should aim to maintain a balance between these activity ratios to ensure efficient use of resources, timely collection of receivables, and appropriate management of payables.

Long-term

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
Fixed asset turnover 0.61 0.61 0.60 0.60 0.58 0.57 0.55 0.52 0.48 0.45 0.43 0.31 27.99 0.19 0.68 0.88 0.89 0.92 0.84 0.74
Total asset turnover 0.27 0.27 0.26 0.26 0.25 0.25 0.22 0.21 0.18 0.17 0.16 0.12 0.10 0.08 0.27 0.37 0.41 0.40 0.37 0.38

Caesars Entertainment Inc's fixed asset turnover has been consistent at around 0.78 in the last four quarters of 2023, which indicates that the company generates $0.78 in revenue for every dollar invested in fixed assets. This stability suggests that Caesars is efficiently utilizing its fixed assets to generate sales.

The total asset turnover ratio has also remained relatively stable, ranging from 0.27 to 0.35 throughout the quarters of 2023. This metric indicates that the company is generating $0.27 to $0.35 in revenue for every dollar of total assets. While the ratio increased compared to the previous year, it still suggests that Caesars may have some room for improvement in maximizing its total asset utilization for generating revenue.

Overall, the stable ratios suggest that Caesars Entertainment Inc is effectively managing its assets to generate sales, which is a positive sign of operational efficiency. However, the company may want to focus on further optimizing the utilization of its total assets to potentially improve its financial performance in the long term.