Caesars Entertainment Corporation (CZR)

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	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
Cash conversion cycle	days	-9.71	-3.76	1.92	3.89	4.91	0.53	-1.42	-21.84	4.62	-10.15	2.99	14.08	15.20	-1.79	0.79	-3.34	-9.33	-5.44	-6.43	-21.86

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.37 + 24.65 – 38.73
= -9.71

Caesars Entertainment Inc's cash conversion cycle has shown fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -5.24 days, indicating that it takes less time for Caesars to convert its investments in inventory and other resources into cash. This improvement from the previous quarter's -4.81 days suggests an efficient management of working capital.

During Q2 2023, the cash conversion cycle briefly decreased to -0.20 days, reflecting a significant improvement in efficiency. However, in Q1 2023, the cycle increased to 1.61 days, indicating a slight delay in converting resources to cash compared to the previous quarter.

Comparing to Q4 2022 and Q3 2022 where the cash conversion cycle was 3.38 days and 0.80 days respectively, there was a notable decrease in Q2 2022 to -0.85 days, reflecting a more efficient conversion of assets into cash. However, the cycle significantly worsened in Q1 2022, reaching -17.05 days, which may suggest potential issues with inventory management or AR collections.

Overall, Caesars Entertainment Inc has experienced fluctuations in its cash conversion cycle over the past eight quarters, indicating changes in operational efficiency and working capital management. Further analysis and monitoring of the trends in the cash conversion cycle will be crucial to assess the company's financial health and effectiveness in managing its cash flows.