Caesars Entertainment Corporation (CZR)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.34 | 4.33 | 4.28 | 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 |
| Days of sales outstanding (DSO) | days | 17.12 | 17.74 | 22.20 | 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 |
| Number of days of payables | days | 28.56 | 27.00 | 42.71 | 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 |
| Cash conversion cycle | days | -7.10 | -4.93 | -16.23 | -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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.34 + 17.12 – 28.56
= -7.10
Based on the data provided for Caesars Entertainment Corporation's cash conversion cycle, we observe fluctuations over the reported periods. The cash conversion cycle is a financial metric that reflects the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From December 31, 2019, to June 30, 2020, the company had negative cash conversion cycles, indicating that Caesars Entertainment was efficiently managing its cash flows, potentially due to rapid collection of receivables or managing its inventory effectively.
However, from December 31, 2020, to March 31, 2024, the company's cash conversion cycle became positive, suggesting that Caesars Entertainment required longer periods to convert its investments into cash receipts. This could imply issues with inventory management, delays in collecting receivables, or possibly increasing payment terms with suppliers.
Notably, by September 30, 2024, the cash conversion cycle trended back into negative territory, indicating a potential improvement in cash flow efficiency and better management of working capital during that period.
Overall, the fluctuating nature of Caesars Entertainment Corporation's cash conversion cycle underscores the importance of closely monitoring and managing working capital components to enhance operational efficiency and cash flow management.
Peer comparison
Dec 31, 2024