Caesars Entertainment Corporation (CZR)

Liquidity ratios

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
Current ratio 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 2.32 1.83 0.98
Quick ratio 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 0.68 0.70 0.78
Cash ratio 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 0.55 0.54 0.60

Caesars Entertainment Inc's liquidity ratios have fluctuated over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally declined from Q1 2022 to Q4 2023, indicating a potential weakening of the company's liquidity position. The ratios have ranged from a low of 0.73 in Q3 2023 to a high of 1.00 in Q2 and Q1 2022. A current ratio below 1 suggests that Caesars may have difficulties in meeting its short-term obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited a downward trend, reflecting a declining ability to meet immediate obligations without relying on inventory. The ratios have ranged from 0.31 in Q1 2022 to 0.76 in Q3 2023, with every quarter falling below the ideal ratio of 1. This indicates that Caesars may have limitations in quickly accessing liquid assets to cover short-term liabilities.

The cash ratio, which is the most conservative liquidity metric as it only considers cash and cash equivalents, has also shown variability over the periods analyzed. Caesars' cash ratio ranged from 0.22 in Q1 2022 to 0.53 in Q1 2023. While the cash ratio tends to be lower than the current and quick ratios, an upward trend can indicate an improved ability to cover short-term liabilities with cash on hand.

Overall, the declining trend in Caesars Entertainment Inc's liquidity ratios, particularly the current and quick ratios, over the past eight quarters raises concerns about the company's ability to meet its short-term obligations. It suggests potential liquidity challenges that need to be monitored and addressed to ensure the company's financial health and stability.


Additional liquidity measure

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
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

The cash conversion cycle of Caesars Entertainment Inc has been fluctuating over the past eight quarters. In Q4 2023 and Q3 2023, the company exhibited negative cash conversion cycles, indicating that it takes less time to convert its investments in inventory and other resources into cash inflows from sales and services. This suggests efficient management of working capital during these periods.

However, in Q1 2023, the cash conversion cycle increased to 1.61 days, signaling a slight slowdown in the company's ability to convert its assets into cash. This was further accentuated in Q4 2022 with a cash conversion cycle of 3.38 days, indicating a longer cash conversion period than the previous quarters.

On the other hand, Q2 2023 and Q3 2022 saw near-zero or negative cash conversion cycles, reflecting strong working capital management and efficient cash flow conversion. Notably, Q1 2022 recorded a significant negative cash conversion cycle of -17.05 days, suggesting a very efficient cash conversion process during that quarter.

Overall, while the cash conversion cycle of Caesars Entertainment Inc has shown variations over the quarters, the company has demonstrated periods of efficient working capital management and effective conversion of assets into cash inflows. Monitoring this metric can provide insights into the company's liquidity, operational efficiency, and financial performance over time.