Monarch Casino & Resort Inc (MCRI)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.21 | 28.24 | 8.55 | 16.88 | 11.73 |
| Days of sales outstanding (DSO) | days | 9.47 | 26.47 | 33.07 | 56.67 | 8.27 |
| Number of days of payables | days | 79.50 | 53.86 | 22.19 | 25.15 | 29.67 |
| Cash conversion cycle | days | -43.82 | 0.85 | 19.43 | 48.40 | -9.67 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.21 + 9.47 – 79.50
= -43.82
The cash conversion cycle of Monarch Casino & Resort, Inc. has fluctuated over the last five years. In 2023, the company's cash conversion cycle was -94.74 days, reflecting an improvement from the previous year when it was -72.82 days. This indicates that the company takes fewer days to convert its investments in inventory and other resources into cash.
Although the trend has been positive in recent years, it is worth noting that in 2020, the cash conversion cycle was significantly higher at -187.14 days, which may suggest that the company faced challenges in managing its working capital efficiently during that period. However, the company was able to optimize its operations and improve its cash conversion cycle in the following years.
Overall, a negative cash conversion cycle, as seen in the case of Monarch Casino & Resort, Inc., indicates that the company is able to collect cash from customers before it pays its suppliers. This can be a positive sign of effective working capital management and liquidity within the organization.
Peer comparison
Dec 31, 2023