Golden Entertainment Inc (GDEN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.03 | 1.11 | 0.77 | 2.36 | 2.35 | 2.48 | 3.01 | 2.81 | 1.84 | 1.91 | 1.91 | 1.91 | 2.08 | 1.93 | 1.98 | 1.34 | 1.19 | 1.09 | 0.99 | 2.62 |
| Quick ratio | 0.57 | 0.72 | 0.52 | 2.13 | 0.90 | 1.28 | 0.81 | 0.68 | 1.03 | 1.23 | 1.50 | 1.50 | 1.74 | 1.57 | 1.15 | 1.03 | 0.87 | 0.76 | 0.67 | 2.28 |
| Cash ratio | 0.57 | 0.72 | 0.52 | 2.13 | 0.90 | 1.28 | 0.81 | 0.68 | 1.03 | 1.23 | 1.50 | 1.50 | 1.74 | 1.57 | 1.15 | 1.03 | 0.87 | 0.76 | 0.67 | 2.28 |
The liquidity ratios of Golden Entertainment Inc have shown fluctuating trends over the past few years.
The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Golden Entertainment Inc's current ratio has ranged between 0.77 to 3.01 during the period under review. The current ratio improved significantly in the recent quarters, reaching a peak of 3.01 on June 30, 2023, indicating a stronger ability to meet short-term obligations.
The quick ratio, which is a more stringent measure of liquidity, excludes inventory from current assets, providing a clearer view of the company's ability to meet short-term obligations with its most liquid assets. Golden Entertainment Inc's quick ratio fluctuated between 0.52 to 2.13 during the same period. The quick ratio also showed improvement in recent quarters, with a peak of 2.13 on March 31, 2024.
The cash ratio, which is the most conservative liquidity metric, focuses solely on the company's ability to cover its current liabilities with its cash and cash equivalents. Golden Entertainment Inc's cash ratio mirrored the trend of the quick ratio, showing improvement in recent quarters.
Overall, the liquidity ratios of Golden Entertainment Inc have been volatile but generally improved in the most recent periods, indicating a strengthening liquidity position and ability to meet short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 9.11 | 6.93 | 5.43 | 5.01 | 4.89 | 4.41 | 4.57 | 4.24 | 4.80 | 3.98 | 4.30 | 4.49 | 4.15 | 3.82 | 4.08 | 4.95 | 5.05 | 5.25 | 5.29 | 4.74 |
Golden Entertainment Inc's cash conversion cycle has exhibited some fluctuations over the specified period. The company's cash conversion cycle measures the time taken to convert its investments in inventory and receivables into cash flows from sales.
Looking at the trend, we observe a gradual increase in the cash conversion cycle from around 4.74 days on March 31, 2020, to a peak of 9.11 days on December 31, 2024. This suggests that Golden Entertainment Inc took longer to convert its investments into cash during this period.
The company experienced some volatility in the cash conversion cycle, with peaks and troughs seen across different quarters. Notably, the cycle decreased to its lowest point of 3.82 days on September 30, 2021, indicating a more efficient management of working capital during that period.
Overall, a lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert investments into cash quickly. However, the increasing trend observed from 2020 to 2024 may raise concerns about the company's working capital management efficiency and liquidity position. Further analysis of the underlying factors influencing this trend would be necessary to understand the implications for Golden Entertainment Inc's financial performance and operational effectiveness.