Monarch Casino & Resort Inc (MCRI)
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 | 31.28 | 26.21 | 28.24 | 8.55 | 16.88 |
| Days of sales outstanding (DSO) | days | 8.24 | 9.47 | 26.47 | 33.07 | 56.67 |
| Number of days of payables | days | 138.76 | 79.50 | 53.86 | 22.19 | 25.15 |
| Cash conversion cycle | days | -99.25 | -43.82 | 0.85 | 19.43 | 48.40 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.28 + 8.24 – 138.76
= -99.25
The cash conversion cycle of Monarch Casino & Resort Inc has shown a significant improvement over the years based on the data provided.
As of December 31, 2020, the company had a cash conversion cycle of 48.40 days, indicating that it took the company around 48 days to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle decreased to 19.43 days, showcasing a more efficient management of inventory and receivables.
Further improvement was seen by December 31, 2022, with the cash conversion cycle at a mere 0.85 days, suggesting the company's ability to quickly convert investments into cash.
A notable turnaround occurred by December 31, 2023, where the cash conversion cycle became negative at -43.82 days, indicating that the company was holding onto cash longer than it required to fund its operations.
By December 31, 2024, the trend continued, with the cash conversion cycle further decreasing to -99.25 days, indicating an even more efficient management of working capital and cash flow.
Overall, the decreasing trend in the cash conversion cycle over the years signifies improving efficiency in Monarch Casino & Resort Inc's operations in converting investments into cash, potentially leading to enhanced liquidity and profitability.
Peer comparison
Dec 31, 2024