Golden Entertainment Inc (GDEN)
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 | 10.03 | 5.12 | 4.80 | 4.15 | 5.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 10.03 | 5.12 | 4.80 | 4.15 | 5.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.03 + — – —
= 10.03
The cash conversion cycle of Golden Entertainment Inc has shown variations over the years. On December 31, 2020, the cash conversion cycle was 5.05 days, indicating that the company took approximately 5.05 days to convert its investments in inventory and other resources into cash inflows from sales. By December 31, 2021, the cycle improved to 4.15 days, suggesting a more efficient management of working capital.
However, there was a slight increase in the cash conversion cycle to 4.80 days by December 31, 2022, indicating a potential slowdown in the company's cash conversion process. This trend continued as the cycle further increased to 5.12 days by December 31, 2023, possibly signaling challenges in managing cash flows efficiently.
The most significant change occurred by December 31, 2024, with the cash conversion cycle spiking to 10.03 days, which is more than double the cycle observed in the previous year. This sharp increase may indicate issues with inventory management, accounts receivable collection, or payment of accounts payable, which could potentially impact the company's liquidity and overall financial health.
Overall, the trend in the cash conversion cycle of Golden Entertainment Inc reflects fluctuations in working capital management efficiency over the years, highlighting the importance of closely monitoring and addressing any potential gaps in the cash conversion process to sustain healthy cash flows and operational stability.
Peer comparison
Dec 31, 2024