Wynn Resorts Limited (WYNN)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	15.82	15.47	13.97	14.37	14.86	15.15	15.67	15.85	16.26	15.92	16.14	16.72	16.70	15.75	16.60	16.97	16.65	17.88	19.60	18.98
Days of sales outstanding (DSO)	days	16.04	21.29	17.60	16.82	20.64	17.64	18.88	22.03	23.82	22.68	19.44	19.02	21.68	26.96	38.17	53.36	44.10	25.02	27.82	25.58
Number of days of payables	days	42.82	43.66	38.85	34.41	40.96	37.92	39.40	41.98	45.80	32.43	35.95	38.17	40.69	38.04	42.22	34.64	37.30	35.56	49.90	42.77
Cash conversion cycle	days	-10.96	-6.90	-7.28	-3.22	-5.46	-5.13	-4.85	-4.09	-5.73	6.17	-0.36	-2.43	-2.32	4.68	12.54	35.69	23.45	7.34	-2.48	1.79

December 31, 2024 calculation

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

The cash conversion cycle of Wynn Resorts Limited has been fluctuating over the years. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers and fulfilling its obligations. This efficiency in managing working capital can be advantageous as it allows the company to operate with lower levels of working capital and potentially generate additional cash flow.

However, it's important to note that a consistently negative cash conversion cycle may also suggest aggressive credit policies towards customers, which could potentially lead to higher default risks. It is crucial for the company to strike a balance between optimizing its cash conversion cycle and managing its credit risk effectively.

Overall, the trend of Wynn Resorts Limited's cash conversion cycle shows variations, with some quarters exhibiting positive days and others negative days. This could be attributed to seasonal fluctuations in customer payments, supplier terms, or changes in working capital management strategies. Monitoring the cash conversion cycle over time can provide insights into the company's efficiency in managing its operating cash flow and working capital requirements.