Wynn Resorts Limited (WYNN)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	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	19.90	11.39	8.50	5.63
Days of sales outstanding (DSO)	days	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	20.46	16.54	16.62	14.46
Number of days of payables	days	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	59.00	41.36	44.95	28.87
Cash conversion cycle	days	-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	-18.64	-13.42	-19.82	-8.78

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.86 + 20.64 – 40.96
= -5.46

The cash conversion cycle of Wynn Resorts Ltd. has shown variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 6.02 days, indicating that on average, it took 6.02 days for Wynn Resorts to convert its investments in inventory and other resources into cash from sales. This was an increase from the previous quarter's figure of 3.57 days.

Comparing to the same quarter of the previous year, the current cash conversion cycle in Q4 2023 was higher than that of Q4 2022, which was 1.48 days. Despite the increase, the company has managed to keep the cash conversion cycle relatively low in the recent quarters compared to Q3 2022 (9.75 days). It is worth noting that a lower cash conversion cycle is generally considered more favorable as it indicates that the company is efficiently managing its working capital and generating cash from its operations.

Looking at the trend over the past year, Wynn Resorts Ltd. has shown improvements in its cash conversion cycle efficiency as compared to the more extended periods in 2022. However, the recent uptick in Q4 2023 suggests some potential challenges in managing working capital effectively. Further monitoring of the cash conversion cycle will be crucial to assess the company's operational efficiency and financial health in upcoming quarters.