Monarch Casino & Resort Inc (MCRI)

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	26.21	25.72	26.03	25.66	28.24	24.94	30.64	28.53	30.77	26.97	28.49	38.35	44.34	27.31	18.84	14.16	11.73	8.05	6.67	6.61
Days of sales outstanding (DSO)	days	9.40	10.04	9.35	6.02	26.43	26.90	29.15	27.20	33.29	31.71	42.30	54.44	56.56	10.54	13.37	6.53	8.27	10.00	9.52	8.10
Number of days of payables	days	79.50	69.95	54.60	56.42	53.86	63.01	66.87	79.44	79.83	65.84	64.64	68.01	66.06	41.93	17.75	13.52	29.67	19.76	20.74	17.40
Cash conversion cycle	days	-43.89	-34.19	-19.23	-24.75	0.80	-11.17	-7.08	-23.71	-15.78	-7.17	6.14	24.78	34.84	-4.08	14.46	7.17	-9.67	-1.71	-4.56	-2.69

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.21 + 9.40 – 79.50
= -43.89

The cash conversion cycle of Monarch Casino & Resort, Inc. has shown fluctuations in recent quarters. The company's cash conversion cycle has generally been negative, indicating that it efficiently converts its investments in raw materials and other resources into cash.

In the latest quarter, Q4 2023, the cash conversion cycle was -94.74 days, which was an improvement compared to the previous quarter. This suggests that the company was able to convert its inventory into cash at a relatively faster rate.

Looking further back, the cash conversion cycle has varied over the past year, with peaks and troughs observed in different quarters. For instance, in Q1 2022, the company experienced a relatively extended cash conversion cycle of -97.96 days, implying that it took longer to convert investments into cash during that period.

Overall, a negative cash conversion cycle indicates an efficient management of working capital by Monarch Casino & Resort, Inc., enabling the company to free up cash for other operational and investment activities. The fluctuations in the cash conversion cycle over the quarters may be influenced by factors such as seasonal trends, business cycles, and operational efficiency efforts within the company.