Caesars Entertainment Corporation (CZR)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	4.63	4.94	3.93	8.40	7.51
Days of sales outstanding (DSO)	days	24.65	26.25	24.25	62.11	9.22
Number of days of payables	days	41.06	26.27	23.77	31.86	25.88
Cash conversion cycle	days	-11.78	4.91	4.41	38.64	-9.14

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.63 + 24.65 – 41.06
= -11.78

The cash conversion cycle of Caesars Entertainment Inc has exhibited fluctuations over the past five years. In 2023, the company reported a negative cash conversion cycle of -5.24 days, indicating that it had a relatively efficient cash management system. This was a significant improvement compared to the previous year, where the company had a cash conversion cycle of 3.38 days.

In 2021, Caesars had a relatively low cash conversion cycle of 1.35 days, suggesting that the company was able to convert its investments in inventory and receivables into cash quickly. However, in 2020, the company's cash conversion cycle increased to 15.16 days, indicating a potential inefficiency in managing its cash flow and working capital.

Interestingly, in 2019, the company again reported a negative cash conversion cycle of -5.08 days, which implies that Caesars was able to operate with negative working capital, potentially leveraging its operational efficiency to generate cash flow.

Overall, Caesars Entertainment Inc has demonstrated variable performance in managing its cash conversion cycle over the past five years, with fluctuations in efficiency and effectiveness in converting its investments into cash. Further analysis of the underlying factors driving these changes would be valuable in understanding the company's cash management strategy and overall financial health.