MGM Resorts International (MGM)
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 | 5.24 | 5.30 | 5.53 | 5.77 | 5.90 | 6.17 | 6.24 | 6.54 | 6.92 | 6.50 | 6.96 | 6.68 | 6.99 | 7.86 | 7.77 | 10.22 | 9.34 | 8.00 | 6.90 | 5.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 5.24 | 5.30 | 5.53 | 5.77 | 5.90 | 6.17 | 6.24 | 6.54 | 6.92 | 6.50 | 6.96 | 6.68 | 6.99 | 7.86 | 7.77 | 10.22 | 9.34 | 8.00 | 6.90 | 5.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.24 + — – —
= 5.24
The cash conversion cycle of MGM Resorts International has shown variations over the observed periods. It measures the time it takes for the company to convert its investments in inventory and other resources back into cash flow from sales.
Between March 31, 2020, and September 30, 2022, the cash conversion cycle ranged from 5.41 days to 6.96 days, indicating a relatively stable period. There was a slight increase in days needed to convert resources into cash from September 30, 2020, to March 31, 2021. The cycle then decreased through September 30, 2022, before slightly increasing again by December 31, 2022.
From March 31, 2023, to December 31, 2024, the cash conversion cycle experienced further decreases, reaching as low as 5.24 days by December 31, 2024. This downward trend suggests potential improvements in efficiency and effectiveness in managing the company's cash flow and operating cycle during these periods.
Overall, the decreasing trend in the cash conversion cycle indicates that MGM Resorts International has been able to manage its working capital efficiently, leading to quicker conversions of resources into cash, which can be a positive indicator of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2024