MGM Resorts International (MGM)
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 | 9.38 | 5.97 | 9.62 | 9.60 | 10.71 |
| Days of sales outstanding (DSO) | days | 25.05 | 22.78 | 35.14 | 34.93 | 34.53 |
| Number of days of payables | days | 30.56 | 17.51 | 28.56 | 15.49 | 24.52 |
| Cash conversion cycle | days | 3.87 | 11.24 | 16.20 | 29.04 | 20.73 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.38 + 25.05 – 30.56
= 3.87
The cash conversion cycle of MGM Resorts International has shown a decreasing trend over the past five years, indicating an improvement in the management of its working capital. In 2023, the company's cash conversion cycle decreased to 10.52 days from 12.35 days in 2022. This signifies that MGM Resorts International is more efficient in converting its investments in inventory and other resources into cash within a shorter timeframe. The downward trend in the cash conversion cycle suggests the company is managing its operations more effectively, potentially leading to improved liquidity and financial performance.
Peer comparison
Dec 31, 2023