Six Flags Entertainment Corporation (FUN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 23.05 | 29.19 | 32.66 | 38.30 | 42.46 | 125.10 | 147.21 | 126.54 | 100.66 | 113.25 | 141.02 | 118.47 | 104.22 | 144.05 | 376.59 | 732.75 | 619.12 | 458.81 | 190.79 | 21.59 |
| Days of sales outstanding (DSO) | days | 22.21 | 30.76 | 22.17 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 34.70 | 39.11 | 44.69 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 10.56 | 20.85 | 10.13 | 38.30 | 42.46 | 125.10 | 147.21 | 126.54 | 100.66 | 113.25 | 141.02 | 118.47 | 104.22 | 144.05 | 376.59 | 732.75 | 619.12 | 458.81 | 190.79 | 21.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.05 + 22.21 – 34.70
= 10.56
The cash conversion cycle of Six Flags Entertainment Corporation has shown fluctuating trends over the periods indicated in the data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2020, the company experienced an increasing trend in the cash conversion cycle, reaching a peak of 619.12 days at the end of December 2020. This significant increase indicates that Six Flags was taking longer to convert its investments into cash during this period.
However, starting from March 2021, there was a notable improvement as the cash conversion cycle decreased to 104.22 days by the end of December 2021. This improvement suggests that Six Flags became more efficient in managing its working capital and converting investments into cash flows.
Subsequently, from March 2022 to December 2024, the cash conversion cycle fluctuated but generally remained at lower levels compared to the peak in December 2020. This indicates that the company continued to maintain a more efficient working capital management process during these subsequent periods.
Overall, the decreasing trend in the cash conversion cycle post-2020 suggests that Six Flags Entertainment Corporation implemented effective strategies to manage its working capital efficiently, resulting in quicker cash conversion and potentially improved liquidity for the company.
Peer comparison
Dec 31, 2024