Wynn Resorts Limited (WYNN)

Short-term

Turnover ratios

Inventory Turnover Analysis:

Wynn Resorts Limited's inventory turnover has shown a consistent increase over the years, indicating efficient management of inventory. The ratio has steadily improved from 19.23 in March 31, 2020, to 23.08 in December 31, 2024, with a peak of 26.13 in June 30, 2024. This suggests the company is selling its inventory more frequently, which could lead to lower holding costs and better cash flow management.

Receivables Turnover Analysis:

The receivables turnover for Wynn Resorts Limited has fluctuated over the years, with a noticeable decrease in the ratio in December 31, 2020, and March 31, 2021. However, the ratio has shown an increasing trend since then, reaching a peak of 22.75 in December 31, 2024. This improvement indicates that the company is collecting its receivables more efficiently, which is a positive sign for its financial health.

Payables Turnover Analysis:

The payables turnover ratio of Wynn Resorts Limited has been relatively stable over the years, hovering between 7.31 and 11.25. This suggests that the company is managing its accounts payable effectively, with a consistent ability to pay off its short-term obligations. The ratio peaked at 11.25 in September 30, 2022, indicating a shorter payment cycle.

Working Capital Turnover Analysis:

The working capital turnover ratio of Wynn Resorts Limited has shown significant variability, with fluctuations seen across different quarters. The ratio has ranged from as low as 0.78 in March 31, 2021, to as high as 8.54 in June 30, 2024. The peak in June 30, 2024, indicates that the company is generating significant revenue in relation to its working capital, reflecting strong operational efficiency.

Overall, the activity ratios for Wynn Resorts Limited demonstrate effective management of its resources and operations, with improvements in inventory turnover, receivables turnover, and working capital turnover over the years, indicating enhanced operational efficiency and liquidity management. The stability of payables turnover further highlights the company's ability to manage its short-term obligations effectively.

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Average number of days

Based on the provided data on Wynn Resorts Limited's activity ratios, we can conduct an analysis of their operational efficiency using three key ratios: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH): This ratio measures how efficiently a company manages its inventory. Wynn Resorts' DOH decreased gradually from 18.98 days as of March 31, 2020, to 14.37 days as of March 31, 2024. The decreasing trend indicates that the company has been improving its inventory management efficiency over the years, possibly by reducing excess inventory levels and improving inventory turnover.

2. Days of Sales Outstanding (DSO): DSO reflects how quickly a company is collecting its accounts receivable. Wynn Resorts' DSO varied over the years, ranging from 16.04 days as of December 31, 2024, to 53.36 days as of March 31, 2021. The fluctuation in DSO suggests some inconsistencies in the company's accounts receivable collection process. However, the decreasing trend towards the end of the period indicates an improvement in collecting receivables more promptly.

3. Number of Days of Payables: This ratio represents the average number of days a company takes to pay its suppliers. Wynn Resorts' number of days of payables ranged from 32.43 days as of September 30, 2022, to 49.90 days as of June 30, 2020. The fluctuating trend in payables days suggests variations in the company's payment terms with suppliers. A company could use longer payment terms to manage its cash flow effectively, although excessively long payables could indicate liquidity issues or strained supplier relationships.

In summary, Wynn Resorts Limited has shown improvements in inventory management efficiency and accounts receivable collection, with some fluctuations in payment practices observed over the reporting period. Monitoring and managing these activity ratios are essential for enhancing the company's overall operational performance and financial health.

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Long-term

Wynn Resorts Limited's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, give insights into how efficiently the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: The Fixed Asset Turnover ratio measures how effectively the company is using its fixed assets (property, plant, and equipment) to generate sales. From March 31, 2020, to December 31, 2024, the ratio fluctuated, starting at 0.57 and gradually increasing to 1.13 by the end of December 2024. This indicates that Wynn Resorts has been improving its efficiency in generating sales from its fixed assets over the period.

2. Total Asset Turnover: The Total Asset Turnover ratio reflects how well Wynn Resorts is utilizing all its assets (both fixed and current) to generate revenue. The ratio also experienced fluctuations during the same period, starting at 0.38 and steadily climbing to 0.57 by December 31, 2024. This shows that the company's overall asset efficiency in generating revenue has been on an upward trend.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Wynn Resorts has been making more effective use of its assets to drive sales growth and improve operational efficiency over the analyzed period.