Caesars Entertainment Corporation (CZR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.35 | 4.63 | 4.94 | 3.93 | 8.40 |
| Days of sales outstanding (DSO) | days | 15.29 | 24.65 | 26.25 | 24.25 | 62.11 |
| Number of days of payables | days | 28.60 | 41.06 | 26.27 | 23.77 | 31.86 |
| Cash conversion cycle | days | -8.96 | -11.78 | 4.91 | 4.41 | 38.64 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.35 + 15.29 – 28.60
= -8.96
Caesars Entertainment Corporation's cash conversion cycle has shown significant fluctuations over the past few years.
In 2020, the company had a cash conversion cycle of 38.64 days, indicating that it took approximately 38.64 days for Caesars to convert its investments in inventory and accounts receivable into cash.
However, by the end of 2021, the cash conversion cycle had significantly improved to 4.41 days, suggesting that Caesars was able to convert its assets into cash at a much faster rate.
This trend continued into 2022 and 2023, with the cash conversion cycle remaining low at 4.91 and -11.78 days, respectively. A negative cash conversion cycle implies that the company is receiving cash from customers before having to pay its suppliers, which can be a favorable sign of financial efficiency.
By 2024, although still negative at -8.96 days, the cash conversion cycle increased slightly compared to the previous year but remained in a healthy range.
Overall, Caesars Entertainment Corporation has displayed improving efficiency in managing its cash conversion cycle, indicating that the company has been effective in optimizing its working capital management and generating cash flows.
Peer comparison
Dec 31, 2024