Wynn Resorts Limited (WYNN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 23.08 | 24.57 | 22.56 | 21.86 | 21.92 |
| Receivables turnover | 22.75 | 17.68 | 15.33 | 16.89 | 8.28 |
| Payables turnover | 8.52 | 8.91 | 8.01 | 8.97 | 9.79 |
| Working capital turnover | 5.33 | 2.96 | 1.49 | 2.12 | 0.86 |
Wynn Resorts Limited's activity ratios provide insights into how efficiently the company manages its operations and assets.
1. Inventory Turnover: The inventory turnover ratio measures how many times the company's inventory is sold and replaced during a certain period. Wynn Resorts has shown a consistent level of inventory turnover over the years, indicating that it effectively manages its inventory levels. The slight increase in 2024 to 23.08 suggests a modest improvement in inventory management efficiency.
2. Receivables Turnover: This ratio reflects how quickly the company collects payments from its customers. Wynn Resorts significantly improved its receivables turnover from 8.28 in 2020 to 22.75 in 2024. This indicates that the company has become more efficient in collecting payments from its customers, which is a positive sign for its cash flow and financial health.
3. Payables Turnover: The payables turnover ratio shows how efficiently the company pays its suppliers. Wynn Resorts maintained a relatively stable payables turnover ratio over the years, ranging between 8.01 and 9.79. This suggests that the company has steady payment practices towards its suppliers.
4. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate sales revenue. Wynn Resorts experienced a substantial increase in working capital turnover from 0.86 in 2020 to 5.33 in 2024. This indicates a significant improvement in the efficient use of working capital to drive revenue growth.
Overall, Wynn Resorts Limited demonstrates solid activity ratios, with improvements in receivables turnover and working capital turnover indicating enhanced efficiency in managing assets and operations. Maintaining stable inventory and payables turnover ratios also show consistent management of inventory levels and supplier payments.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.82 | 14.86 | 16.18 | 16.69 | 16.65 |
| Days of sales outstanding (DSO) | days | 16.04 | 20.64 | 23.82 | 21.60 | 44.10 |
| Number of days of payables | days | 42.82 | 40.95 | 45.59 | 40.69 | 37.30 |
Wynn Resorts Limited's activity ratios provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable practices.
1. Days of Inventory on Hand (DOH):
- Wynn Resorts had relatively stable inventory turnover over the years, ranging from 14.86 to 16.69 days.
- A decreasing trend in days of inventory on hand from 2020 to 2023 reflects improved inventory management efficiency.
- However, a slight increase in DOH in 2024 to 15.82 days may indicate a need to monitor and control inventory levels more effectively.
2. Days of Sales Outstanding (DSO):
- The company's accounts receivable turnover improved significantly over the years, with DSO decreasing from 44.10 days in 2020 to 16.04 days in 2024.
- A decrease in DSO indicates that Wynn Resorts has been successful in collecting payments from customers more quickly, improving cash flow and liquidity.
- The significant decrease in DSO from 2020 to 2021 suggests effective credit policies or better collection processes implemented by the company.
3. Number of Days of Payables:
- Wynn Resorts' days of payables show a fluctuating trend, ranging from 37.30 to 45.59 days.
- The increase in days of payables from 2020 to 2022 may indicate that the company is taking longer to pay its suppliers, potentially benefiting from extended credit terms.
- However, the decrease in days of payables in 2023 followed by a slight increase in 2024 could signify changes in the company's payment policies or relationships with suppliers.
In summary, Wynn Resorts has shown improved efficiency in managing its inventory levels and collecting accounts receivable, which could lead to enhanced cash flow and working capital management. Monitoring payables management practices to maintain favorable relationships with suppliers while optimizing cash flows remains crucial for sustaining operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.13 | 0.90 | 0.48 | 0.38 | 0.18 |
| Total asset turnover | 0.57 | 0.43 | 0.25 | 0.27 | 0.12 |
Wynn Resorts Limited's fixed asset turnover has shown a consistent improvement over the years, increasing from 0.18 in 2020 to 1.13 in 2024. This indicates that the company is generating more revenue relative to its fixed assets, which is a positive trend as it signifies better efficiency in utilizing its long-term assets.
In contrast, the total asset turnover ratio fluctuated during the period, reaching its peak at 0.57 in 2024 after some fluctuations. This ratio reflects the company's ability to generate sales in relation to its total assets. The increase in total asset turnover indicates that Wynn Resorts Limited has been more effective in utilizing its total assets to generate sales and generate revenue.
Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests improvement in the company's long-term asset management efficiency and utilization over the years.