Madison Square Garden Sports Corp (MSGS)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 16.51 | 13.72 | 30.89 |
| Days of sales outstanding (DSO) | days | 10.34 | 28.46 | 30.45 | 34.19 | 47.14 |
| Number of days of payables | days | 6.81 | 5.86 | 6.05 | 8.21 | 2.88 |
| Cash conversion cycle | days | 3.53 | 22.60 | 40.91 | 39.70 | 75.15 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 10.34 – 6.81
= 3.53
The analysis of Madison Square Garden Sports Corp's cash conversion cycle (CCC) over the period from June 30, 2021, to June 30, 2025, reveals a consistent and significant downward trend, indicating notable improvements in the company's operational efficiency and liquidity management.
Initially, as of June 30, 2021, the CCC was recorded at 75.15 days. This relatively extended cycle reflects the duration it took for the company to convert its investments in inventory and receivables into cash, offset by the period it took to settle its payables. By June 30, 2022, the CCC decreased substantially to 39.70 days, representing a reduction of more than half, which suggests substantial enhancements in managing working capital components—such as faster collection of receivables, optimized inventory turnover, or extended payment terms with suppliers.
The downward trend continued into the subsequent year, with the CCC reaching 40.91 days as of June 30, 2023, effectively stabilizing at a lower level compared to 2022, indicating ongoing efficiency gains. The further reduction to 22.60 days by June 30, 2024, underscores a significant acceleration in cash flow conversion processes, potentially driven by improved operational practices, enhanced contractual terms, or strategic adjustments.
Most notably, the CCC sharply declined to 3.53 days as of June 30, 2025. This near-negligible cycle duration implies that the company now swiftly converts its working capital into cash, with minimal lag. Such a dramatic decrease might reflect optimized receivable collections, just-in-time inventory management, or more favorable payment arrangements with suppliers.
Overall, the progressive narrowing of Madison Square Garden Sports Corp's cash conversion cycle over these years signifies substantial improvements in managing operational cash flows and working capital efficiency. The trend suggests the company's strategic initiatives aimed at liquidity optimization and streamlined operations have been highly effective, positioning it for enhanced financial flexibility and potential growth opportunities.
Peer comparison
Jun 30, 2025