Monarch Casino & Resort Inc (MCRI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.28 | 25.58 | 27.07 | 24.90 | 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 |
| Days of sales outstanding (DSO) | days | 8.18 | 8.39 | 8.12 | 7.34 | 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 |
| Number of days of payables | days | 138.76 | 44.47 | 58.14 | 72.50 | 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 |
| Cash conversion cycle | days | -99.31 | -10.50 | -22.96 | -40.26 | -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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.28 + 8.18 – 138.76
= -99.31
The cash conversion cycle of Monarch Casino & Resort Inc has shown varying trends over the past few years, indicating changes in the company's efficiency in managing its cash flows.
Initially, from March 31, 2020, to December 31, 2021, the cash conversion cycle fluctuated significantly, ranging from negative values to around 35 days. A negative cash conversion cycle suggests that the company was able to collect cash from customers before paying its suppliers, resulting in a favorable position in terms of liquidity and working capital management. However, the positive values during this period reflect that the company struggled with cash flow management at times, leading to longer conversion cycles.
From March 31, 2022, to June 30, 2024, the cash conversion cycle consistently stayed in negative territory, indicating an improvement in efficiency in managing cash flows. The negative values suggest that the company continued to operate with a favorable liquidity position, collecting cash from customers more quickly than paying its suppliers.
Overall, a negative cash conversion cycle is typically seen as a positive sign, indicating that the company is efficiently managing its working capital and cash flows. It signifies that Monarch Casino & Resort Inc is collecting cash from its customers faster than it is spending on its operations and suppliers, thereby potentially improving its overall financial health and liquidity position.
Peer comparison
Dec 31, 2024