Wynn Resorts Limited (WYNN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,041,540	3,310,710	3,369,780	1,656,560	6,181,400
Total current assets	US$ in thousands	4,241,620	4,029,590	2,875,920	3,813,150	2,856,340
Total current liabilities	US$ in thousands	2,200,450	1,811,420	1,287,880	1,880,890	1,982,880
Working capital turnover		2.96	1.49	2.12	0.86	7.08

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,041,540K ÷ ($4,241,620K – $2,200,450K)
= 2.96

Wynn Resorts Ltd.'s working capital turnover has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio is generally preferred as it implies that the company is able to generate more revenue with the given amount of working capital.

In 2023, the working capital turnover ratio improved significantly to 3.20, indicating that the company was able to generate more revenue relative to its working capital compared to the previous year. This suggests a more efficient use of working capital in generating sales.

In 2022, the ratio was 1.69, which was lower compared to the following year. This indicates that the company was not as efficient in utilizing its working capital to generate revenue compared to the two subsequent years.

The working capital turnover ratio was 2.37 in 2021, showing an improvement from the previous year, suggesting better efficiency in generating revenue with the available working capital.

In 2020, the ratio was 1.08, indicating that the company's ability to generate revenue relative to its working capital was relatively low, possibly due to various operational or financial challenges.

In 2019, the working capital turnover ratio was notably high at 7.57, suggesting exceptional efficiency in utilizing working capital to generate revenue. This could be attributed to effective working capital management practices or a boost in sales relative to working capital.

Overall, the fluctuation in Wynn Resorts Ltd.'s working capital turnover over the years indicates varying levels of efficiency in utilizing working capital to generate revenue, with the ratio improving notably in 2023 compared to the previous years.