Las Vegas Sands Corp (LVS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.95 | 5.79 | 5.55 | 5.04 | 5.15 | 4.37 | 4.59 | 4.44 | 4.25 | 4.01 | 3.87 | 3.92 | 3.53 | 5.13 | 5.37 | 4.98 | 5.00 | 4.46 | 4.47 | 4.80 |
| Days of sales outstanding (DSO) | days | 17.03 | 16.60 | 18.08 | 22.64 | 23.89 | 19.16 | 14.97 | 13.48 | 17.59 | 14.37 | 15.25 | 27.52 | 42.71 | 25.66 | 25.12 | 20.71 | 22.50 | 20.16 | 20.25 | 19.50 |
| Number of days of payables | days | 26.16 | 24.80 | 23.42 | 19.46 | 16.37 | 17.31 | 14.54 | 13.31 | 14.86 | 13.48 | 12.15 | 11.92 | 14.30 | 10.56 | 9.28 | 11.33 | 20.14 | 22.98 | 18.69 | 20.83 |
| Cash conversion cycle | days | -3.18 | -2.41 | 0.21 | 8.23 | 12.67 | 6.22 | 5.02 | 4.60 | 6.97 | 4.90 | 6.97 | 19.51 | 31.94 | 20.23 | 21.21 | 14.35 | 7.37 | 1.64 | 6.03 | 3.47 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.95 + 17.03 – 26.16
= -3.18
The cash conversion cycle of Las Vegas Sands Corp has exhibited fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was 12.72 days, indicating that it took Las Vegas Sands Corp 12.72 days on average to convert its investments in inventory and other resources into cash flows from sales. This was a significant increase from the previous quarter's cycle of 7.74 days.
However, in Q2 2023, the cash conversion cycle decreased to 7.15 days, showing an improvement in the efficiency of Las Vegas Sands Corp's working capital management. This positive trend continued in Q3 2023, with a further reduction to 7.09 days.
Moreover, in Q4 2023, the cash conversion cycle increased slightly to 7.99 days but remained lower than the levels seen in Q1 2023 and Q4 2022. Overall, the company has been able to manage its cash conversion cycle efficiently over the past year, with improvements seen in certain quarters.
It is important for Las Vegas Sands Corp to continue monitoring and optimizing its cash conversion cycle to ensure efficient working capital management and maximize cash flow generation. fluctuations in the cash conversion cycle may impact the company's liquidity and profitability in the long run.
Peer comparison
Dec 31, 2023