Golden Entertainment Inc (GDEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 44.15 | 41.40 | 49.56 | 60.62 | 43.32 |
| Receivables turnover | 79.68 | 54.40 | 58.21 | 50.21 | 58.73 |
| Payables turnover | 19.12 | 13.35 | 17.22 | 16.94 | 11.84 |
| Working capital turnover | 5.75 | 9.97 | 7.96 | 31.26 | 34.49 |
The activity ratios of Golden Entertainment Inc indicate the efficiency of the company in managing its assets and liabilities over the past five years.
1. Inventory Turnover: Golden Entertainment Inc's inventory turnover has ranged from 67.64 to 87.90 over the past five years. This indicates that the company efficiently sells and replenishes its inventory. A higher inventory turnover ratio is generally favorable as it suggests quicker sales of inventory.
2. Receivables Turnover: The receivables turnover ratio has fluctuated between 50.64 and 62.13 over the same period. This ratio indicates how well the company manages its credit sales and collects payments from customers. Generally, a higher receivables turnover ratio is preferred as it signifies prompt collection of receivables.
3. Payables Turnover: The payables turnover ratio for Golden Entertainment Inc has varied from 18.48 to 30.88. This ratio reflects how quickly the company pays its suppliers and creditors. A higher payables turnover ratio may indicate that the company is efficiently managing its payables.
4. Working Capital Turnover: The working capital turnover ratio has ranged from 4.48 to 35.19 over the past five years. This ratio measures how effectively the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio suggests efficient utilization of resources to drive sales.
In summary, Golden Entertainment Inc has shown varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years. The company's performance in these areas can provide insights into its overall operational effectiveness and financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.27 | 8.82 | 7.37 | 6.02 | 8.42 |
| Days of sales outstanding (DSO) | days | 4.58 | 6.71 | 6.27 | 7.27 | 6.21 |
| Number of days of payables | days | 19.09 | 27.33 | 21.20 | 21.55 | 30.83 |
Let's analyze Golden Entertainment Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
- The DOH for Golden Entertainment Inc has been relatively stable over the past five years, ranging from 4.15 days to 5.40 days. This indicates that the company manages its inventory efficiently.
- A lower DOH suggests that the company is selling its inventory quickly, which could be a sign of effective inventory management.
2. Days of Sales Outstanding (DSO):
- The DSO for Golden Entertainment Inc fluctuated over the past five years, with a range of 5.87 days to 7.21 days. This suggests variability in the company's collection period for accounts receivable.
- A lower DSO indicates that the company is collecting its receivables faster, which is generally preferable as it improves cash flow.
3. Number of Days of Payables:
- The number of days of payables for Golden Entertainment Inc has also shown variability over the past five years, ranging from 11.82 days to 19.75 days. This indicates differences in the company's payment period for its payables.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which could be seen as a way to manage working capital.
In summary, Golden Entertainment Inc's activity ratios suggest that the company is managing its inventory efficiently and has some variability in its collection period for receivables and payment period for payables. Further analysis of trends and comparison with industry benchmarks could provide additional insights into the company's performance in managing its working capital and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.72 | 1.33 | 1.21 | 0.71 | 0.91 |
| Total asset turnover | 0.93 | 0.74 | 0.67 | 0.44 | 0.55 |
Golden Entertainment Inc's long-term activity ratios show the efficiency with which the company utilizes its fixed assets and total assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the past five years, ranging from 0.71 to 1.34. This indicates that the company is able to generate $1.21 to $1.34 in revenue for every dollar invested in fixed assets, showing a consistent performance in utilizing its long-term investments.
On the other hand, the total asset turnover ratio has also shown stability over the same period, varying from 0.44 to 0.74. This ratio signifies that the company generates between $0.44 and $0.74 in revenue for every dollar of total assets held. The consistent performance of this ratio indicates that the company efficiently utilizes its total assets to generate sales.
Overall, both ratios suggest that Golden Entertainment Inc effectively manages its long-term assets to generate revenue, demonstrating a consistent and efficient use of its resources over the past five years.