MGM Resorts International (MGM)
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 | 5.46 | 6.05 | 6.92 | 6.99 | 9.34 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 5.46 | 6.05 | 6.92 | 6.99 | 9.34 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.46 + — – —
= 5.46
The cash conversion cycle of MGM Resorts International has shown a positive trend, decreasing from 9.34 days on December 31, 2020, to 5.46 days on December 31, 2024. This indicates that the company has been able to manage its operating cycle more efficiently over the years, translating into a shorter period for converting its investments in inventory and other resources into cash inflows from sales. The downward trend in the cash conversion cycle suggests improved liquidity management and effective working capital control within the organization. By reducing the time it takes to convert resources into cash, MGM Resorts International may be better positioned to meet its financial obligations, fund future investments, and potentially enhance shareholder value through improved cash flow dynamics.
Peer comparison
Dec 31, 2024