Wynn Resorts Limited (WYNN)

The liquidity ratios of Wynn Resorts Limited indicate the company's ability to meet its short-term obligations effectively.

Starting with the current ratio, which measures the company's ability to cover its current liabilities with its current assets, we see that it has remained relatively stable over the years, ranging from 1.90 to 2.23. A current ratio above 1 indicates that the company has more current assets than current liabilities, with a higher ratio suggesting stronger liquidity. Wynn Resorts Limited has maintained a current ratio above 1, reflecting its ability to meet short-term debt obligations.

Moving on to the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, we observe a similar trend to the current ratio. The quick ratio has ranged from 1.60 to 2.14, indicating that the company can cover its immediate liabilities without relying on selling inventory. A quick ratio above 1 signifies a healthy liquidity position, and Wynn Resorts Limited has consistently demonstrated this.

Lastly, the cash ratio, which specifically focuses on the company's ability to cover current liabilities with its cash and cash equivalents, shows a fluctuating trend but generally above 1. This implies that Wynn Resorts Limited holds sufficient cash to meet its short-term obligations without relying on the conversion of other assets into cash.

Overall, based on the analysis of these liquidity ratios, Wynn Resorts Limited appears to have maintained a solid liquidity position over the years, with the ability to fulfill its short-term financial obligations comfortably.

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Additional liquidity measure

The cash conversion cycle for Wynn Resorts Limited has shown a significant improvement over the past few years. As of December 31, 2020, the company's cash conversion cycle was 23.45 days, indicating that it took Wynn Resorts 23.45 days on average to convert its invested resources into cash flows.

By December 31, 2021, Wynn Resorts managed to reduce its cash conversion cycle to -2.39 days, indicating that the company was able to convert its resources into cash flows before investing them, possibly by managing its working capital more efficiently.

The trend continued to improve in the following years, with Wynn Resorts' cash conversion cycle declining further to -5.59 days by December 31, 2022, -5.45 days by December 31, 2023, and -10.96 days by December 31, 2024. These negative values suggest that Wynn Resorts has been able to convert its invested resources into cash flows at a faster rate, indicating strong efficiency in managing its working capital and generating cash from its operations.

Overall, the decreasing trend in Wynn Resorts' cash conversion cycle over the years highlights the company's effective management of its working capital and ability to convert investments into cash flows efficiently.