Six Flags Entertainment Corporation (FUN)
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 | 25.84 | 13.66 | 100.66 | 104.22 | 619.12 |
| Days of sales outstanding (DSO) | days | 22.21 | — | — | — | — |
| Number of days of payables | days | 38.91 | — | — | — | — |
| Cash conversion cycle | days | 9.15 | 13.66 | 100.66 | 104.22 | 619.12 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.84 + 22.21 – 38.91
= 9.15
The cash conversion cycle of Six Flags Entertainment Corporation has shown a significant improvement over the years. In 2020, the company's cash conversion cycle stood at 619.12 days, indicating a prolonged period required to convert investments in inventory and other resources back into cash.
However, the company made impressive progress in managing its working capital efficiency as reflected in the subsequent years. By the end of 2021, the cash conversion cycle had decreased to 104.22 days, showing a substantial enhancement in the company's ability to convert resources into cash faster.
Continuing this positive trend, by the end of 2022, Six Flags further reduced its cash conversion cycle to 100.66 days, signaling continued efficiency in managing its working capital components.
In the following years, the company made remarkable strides in streamlining its operations and improving liquidity management. By the end of 2023, the cash conversion cycle had declined to 13.66 days, reflecting a significant acceleration in converting investments into cash.
By the most recent period at the end of 2024, the company achieved an impressive cash conversion cycle of just 9.15 days, indicating a highly efficient working capital management and swift conversion of resources into cash.
Overall, the trend in Six Flags Entertainment Corporation's cash conversion cycle signifies a consistent effort towards enhancing liquidity, improving operational efficiency, and optimizing working capital management practices.
Peer comparison
Dec 31, 2024