Wynn Resorts Limited (WYNN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	14.86	16.18	16.69	16.65	19.90
Days of sales outstanding (DSO)	days	20.64	23.82	21.60	44.10	20.46
Number of days of payables	days	40.95	45.59	40.69	37.30	59.00
Cash conversion cycle	days	-5.45	-5.59	-2.39	23.45	-18.64

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.86 + 20.64 – 40.95
= -5.45

The cash conversion cycle of Wynn Resorts Ltd. has fluctuated over the past five years. In 2023, it increased to 6.02 days from 1.48 days in 2022, indicating a longer period to convert inputs into cash. This increase may suggest potential challenges in efficiently managing cash flows or in the company's ability to efficiently utilize its resources in generating revenue.

Comparing to the previous years, the cash conversion cycle was relatively low in 2019 at 3.52 days, indicating a faster conversion of resources into cash during that period. However, in 2020, the cycle increased significantly to 17.65 days, suggesting a lengthened process in converting resources into cash, potentially due to operational challenges or changes in the company's business environment.

Overall, analyzing the trend of the cash conversion cycle for Wynn Resorts Ltd. provides insights into the efficiency of the company's working capital management and operational effectiveness in converting investments into cash. The variability in the cycle from year to year suggests the need for close monitoring and potential improvements in managing working capital and cash flows.