Golden Entertainment Inc (GDEN)

Based on the data provided, Golden Entertainment Inc's liquidity ratios have shown fluctuations over the past five years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been healthy, with a significant improvement from 2019 to 2023. The current ratio increased from 1.21 in 2019 to 2.35 in 2023, indicating that the company's liquidity position has strengthened over the years.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. Golden Entertainment Inc's quick ratio has also shown variability, with a notable decline from 2022 to 2023. However, the ratio remains above 1 in all years, suggesting that the company has an adequate ability to meet its short-term obligations without relying on inventory.

The cash ratio, which indicates the extent to which cash and cash equivalents cover current liabilities, has generally been above 1 for Golden Entertainment Inc, indicating that the company has enough cash on hand to meet its immediate debt obligations. However, there was a slight decrease in the cash ratio from 2022 to 2023.

Overall, Golden Entertainment Inc's liquidity ratios demonstrate a positive trend, with improvements in the current ratio over the years. However, the company should continue to monitor its liquidity position to ensure it can meet its short-term financial commitments effectively.

---

Additional liquidity measure

The cash conversion cycle of Golden Entertainment Inc has shown a consistent improvement over the past five years. The company's cash conversion cycle decreased from -8.26 days in 2019 to -0.83 days in 2023. This indicates that Golden Entertainment Inc has been able to convert its inventory into cash at a faster rate over the years.

A negative cash conversion cycle suggests that the company is able to collect cash from customers before paying its suppliers, which can be a sign of efficient working capital management. In this case, Golden Entertainment Inc has been able to streamline its operations to optimize its cash flow position.

The decreasing trend in the cash conversion cycle indicates that the company has been successful in managing its inventory, accounts receivable, and accounts payable effectively. This efficiency in managing working capital can help improve the company's liquidity and profitability.

Overall, Golden Entertainment Inc's favorable cash conversion cycle trend reflects its ability to efficiently manage its working capital and convert its resources into cash in a timely manner.