Las Vegas Sands Corp (LVS)

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	3.44	5.95	5.15	4.25	3.53
Days of sales outstanding (DSO)	days	13.47	17.03	23.89	17.59	42.71
Number of days of payables	days	13.77	26.16	16.37	14.86	14.30
Cash conversion cycle	days	3.15	-3.18	12.67	6.97	31.94

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.44 + 13.47 – 13.77
= 3.15

The cash conversion cycle is a key metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Las Vegas Sands Corp, the trend in the cash conversion cycle over the past 5 years shows some fluctuations.

- As of December 31, 2020, the cash conversion cycle was 31.94 days, indicating that the company took around a month to convert its investments into cash.
- By December 31, 2021, the cash conversion cycle had decreased significantly to 6.97 days, which suggests that the company was able to streamline its operations and convert its investments into cash more efficiently.
- In 2022, the cash conversion cycle increased to 12.67 days, signaling a slight slowdown in the company's cash conversion process compared to the previous year.
- The cash conversion cycle further deteriorated by December 31, 2023, reaching -3.18 days. A negative cash conversion cycle may indicate that the company is able to receive cash from sales before having to pay for its inventory, which can be a favorable sign but could also raise questions about the accuracy of the data.
- Finally, by December 31, 2024, the cash conversion cycle improved to 3.15 days, which suggests that the company was able to tighten its operations and convert investments into cash more effectively.

In summary, the cash conversion cycle for Las Vegas Sands Corp has displayed fluctuations over the past five years, reflecting changes in the company's efficiency in managing its working capital and converting investments into cash. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial health and operational performance.