Six Flags Entertainment Corporation (FUN)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.87 | 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 | 95.11 | 109.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 26.87 | 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 | 95.11 | 109.52 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.87 + — – —
= 26.87
The cash conversion cycle of Six Flags Entertainment Corporation has displayed significant fluctuation over the past quarters.
In the most recent quarter, ending June 30, 2024, the company's cash conversion cycle stands at 26.87 days. This represents a notable improvement from the previous quarter's cycle of 38.30 days. The reduction in the cash conversion cycle indicates that Six Flags has been able to efficiently manage its working capital, from the initial investment in inventory to the final receipt of cash from sales.
Looking back over the past year, there have been instances of prolonged cash conversion cycles, such as in the quarter ending September 30, 2023, where the cycle stretched to an alarming 125.10 days. This could have been a result of delays in collecting receivables or issues with inventory turnover during that period.
It is worth noting that in the quarter ending June 30, 2021, the cash conversion cycle spiked significantly to 376.59 days, and even more dramatically in the following quarter ending September 30, 2021, at 732.75 days. These prolonged cycles may indicate operational inefficiencies, difficulties in managing working capital, or challenges in the company's cash flow management during those periods.
Overall, the variations in Six Flags' cash conversion cycle highlight the importance of closely monitoring working capital management to ensure efficient operations and healthy cash flow generation.
Peer comparison
Jun 30, 2024