Wynn Resorts Limited (WYNN)

Cash conversion cycle

		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
Cash conversion cycle	days	-10.96	-5.45	-5.59	-2.39	23.45

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.82 + 16.04 – 42.82
= -10.96

The trend in Wynn Resorts Limited's cash conversion cycle over the period from December 31, 2020, to December 31, 2024, shows a significant improvement.

Initially, on December 31, 2020, the company's cash conversion cycle was 23.45 days, indicating that it took around 23.45 days for the company to convert its investments in inventory and accounts receivable into cash flow from sales.

By December 31, 2021, the cash conversion cycle decreased to -2.39 days. A negative value implies that Wynn Resorts Limited was able to convert its investments into cash at a faster rate than it took to pay its suppliers, indicating a more efficient cash management process.

This efficiency continued to improve as seen in the subsequent years. By December 31, 2022, the cash conversion cycle further decreased to -5.59 days, followed by a slight improvement to -5.45 days on December 31, 2023.

The trend culminated on December 31, 2024, with a cash conversion cycle of -10.96 days, indicating that the company was converting its investments into cash flow significantly faster than it was paying its suppliers.

Overall, the decreasing trend in the cash conversion cycle signifies that Wynn Resorts Limited has been managing its working capital more efficiently, potentially leading to improved liquidity and operational performance over the years.