Wynn Resorts Limited (WYNN)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	6,041,540	5,159,544	4,442,929	3,766,258	3,310,708	3,379,932	3,498,822	3,587,922	3,358,884	3,004,247	2,352,118	1,472,938	1,656,562	2,608,751	3,887,865	5,432,936	6,181,410	6,325,140	6,515,400	6,558,940
Total current assets	US$ in thousands	4,241,620	4,031,180	4,351,760	4,253,280	4,029,590	2,323,410	2,371,210	2,665,610	2,875,920	2,855,890	3,215,090	3,249,770	3,813,150	3,869,480	4,236,380	3,415,360	2,856,340	2,111,250	1,967,320	2,241,830
Total current liabilities	US$ in thousands	2,200,450	1,514,030	1,346,050	1,370,920	1,811,420	1,635,040	1,617,270	1,154,250	1,287,880	1,286,590	2,538,300	1,369,880	1,880,890	1,688,700	1,869,850	1,884,840	1,982,880	1,930,380	1,975,350	1,877,930
Working capital turnover		2.96	2.05	1.48	1.31	1.49	4.91	4.64	2.37	2.12	1.91	3.48	0.78	0.86	1.20	1.64	3.55	7.08	34.97	—	18.02

December 31, 2023 calculation

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

Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is generating more revenue relative to its investment in working capital.

Based on the provided data for Wynn Resorts Ltd., we observe fluctuations in the working capital turnover ratio over the past eight quarters. In Q4 2023, the working capital turnover ratio decreased to 3.20 from 2.26 in Q3 2023. This implies that Wynn Resorts became more efficient in utilizing its working capital to generate revenue in the most recent quarter.

Despite the quarterly fluctuations, the working capital turnover ratio has generally been trending upwards since Q1 2022 when it stood at 2.64. The significant increase in Q3 2022 to 5.53 indicated a notable improvement in efficiency, which suggests that the company was effectively managing its working capital during that period.

It is essential for Wynn Resorts to continually monitor and manage its working capital effectively to ensure optimal utilization of resources. The fluctuations in the working capital turnover ratio over the quarters may reflect changes in the company's operational efficiency, liquidity, and financial management strategies. By maintaining a healthy working capital turnover ratio, Wynn Resorts can sustain its business operations, support growth initiatives, and enhance shareholder value.