Madison Square Garden Sports Corp (MSGS)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 11.23 | 9.28 | 17.46 | 17.17 |
| Days of sales outstanding (DSO) | days | — | — | 27.91 | 53.29 | 3.73 |
| Number of days of payables | days | — | — | 5.56 | 1.63 | 1.18 |
| Cash conversion cycle | days | 0.00 | 11.23 | 31.63 | 69.12 | 19.72 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Madison Square Garden Sports Corp has demonstrated varying efficiency in managing its cash conversion cycle over the past five years. The cash conversion cycle, which indicates the average time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has decreased significantly over the years.
In particular, the cash conversion cycle was at its highest in June 2021, at 69.12 days, reflecting a longer time period for the company to convert its resources into cash. This was followed by a substantial improvement in June 2022, where the cycle decreased to 31.63 days, indicating enhanced efficiency in managing inventory and collecting cash from sales.
Moreover, there was a further significant reduction in the cash conversion cycle by June 2023, down to 11.23 days, showcasing the company's continued efforts to streamline its operations and enhance cash flow management.
Notably, in June 2024, Madison Square Garden Sports Corp achieved a remarkable cash conversion cycle of 0.00 days, suggesting that the company has efficiently optimized its working capital and operational processes to convert its resources into cash almost instantaneously.
Overall, the trend in the cash conversion cycle for Madison Square Garden Sports Corp indicates a positive trajectory towards improved liquidity and operational efficiency over the years. The company's ability to consistently shorten its cash conversion cycle reflects positively on its management of working capital and cash flow dynamics.
Peer comparison
Jun 30, 2024