Caesars Entertainment Corporation (CZR)

Liquidity ratios

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
Current ratio 0.77 0.84 0.69 0.76 0.73 0.78 0.85 0.79 0.80 1.00 1.00 1.13 1.19 1.16 2.62 2.41 2.55 3.22 1.61 0.88
Quick ratio 0.59 0.56 0.50 0.60 0.55 0.61 0.63 0.62 0.65 0.33 0.28 0.35 0.36 0.33 1.70 0.86 1.51 2.17 0.97 0.43
Cash ratio 0.38 0.35 0.29 0.37 0.33 0.41 0.41 0.39 0.45 0.23 0.19 0.26 0.28 0.25 1.55 0.71 1.34 2.07 0.91 0.35

Caesars Entertainment Corporation's liquidity ratios show a fluctuating trend over the period analyzed. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 0.88 on December 31, 2019, to 0.77 on December 31, 2024.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also witnessed a declining trend, dropping from 0.43 on December 31, 2019, to 0.59 on December 31, 2024.

The cash ratio, reflecting the company's ability to pay its short-term obligations using only cash and cash equivalents, experienced fluctuations but remained relatively stable overall. It decreased slightly from 0.35 on December 31, 2019, to 0.38 on December 31, 2024.

Overall, the declining trend in the current and quick ratios indicates a potential weakening of Caesars Entertainment Corporation's short-term liquidity position over the analyzed period, while the stable cash ratio suggests a consistent ability to meet short-term obligations with cash on hand. It is important for the company to closely monitor these ratios to ensure sufficient liquidity to meet its financial obligations.

Additional liquidity measure

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
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

The cash conversion cycle of Caesars Entertainment Corporation has exhibited fluctuations over the past few years. It indicates the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From December 2019 to March 2020, the company's cash conversion cycle improved significantly, moving from a negative 9.33 days to a lower negative 3.34 days. This suggests that the company was managing its working capital efficiently during this period.

However, from March 2020 to December 2020, there was a notable shift in the trend with the cash conversion cycle increasing to 15.20 days. This increase indicates a potential slowdown in the company's ability to convert its resources into cash during this period.

The cycle remained elevated until March 2021 but gradually improved by June 2021 to 2.99 days, indicating a more efficient management of working capital. The trend continued to fluctuate with negative numbers being recorded in some quarters, which may suggest an efficient cash management process.

As of December 2024, the cash conversion cycle remained negative, which can be seen as a positive sign indicating that the company is able to convert its resources into cash quickly.

Overall, the trend in the cash conversion cycle of Caesars Entertainment Corporation shows fluctuations over the years, with some periods of efficient working capital management and others indicating potential challenges in converting investments into cash flows. Monitoring the cash conversion cycle can provide insights into the company's liquidity and operational efficiency.