Wynn Resorts Limited (WYNN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.90 | 1.53 | 1.30 | 1.43 | 1.93 | 2.66 | 3.23 | 3.10 | 2.22 | 1.42 | 1.47 | 2.31 | 2.23 | 2.22 | 1.27 | 2.37 | 2.03 | 2.29 | 2.27 | 1.81 |
| Quick ratio | 1.79 | 1.46 | 1.23 | 1.15 | 1.60 | 2.20 | 3.10 | 2.97 | 2.14 | 1.32 | 1.36 | 2.17 | 2.11 | 2.10 | 1.20 | 2.27 | 1.96 | 2.21 | 2.19 | 1.73 |
| Cash ratio | 1.58 | 1.32 | 1.11 | 1.03 | 1.44 | 2.03 | 2.93 | 2.80 | 2.02 | 1.19 | 1.25 | 2.01 | 1.96 | 1.92 | 1.10 | 2.11 | 1.85 | 2.10 | 2.03 | 1.53 |
Based on the provided data, we can analyze the liquidity ratios of Wynn Resorts Limited over the specified time periods.
1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Wynn Resorts' current ratio has fluctuated over the years, ranging from a low of 1.27 in June 2021 to a high of 3.23 in June 2023. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which is considered favorable. Wynn Resorts' current ratio has mostly been above 1, indicating a healthy liquidity position.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets. Wynn Resorts' quick ratio has shown similar fluctuations to the current ratio, with a low of 1.15 in March 2024 and a high of 3.10 in June 2023. The quick ratio provides a more conservative view of the company's ability to meet its short-term obligations without relying on inventory.
3. Cash Ratio: The cash ratio is the most conservative liquidity measure as it only considers cash and cash equivalents as current assets. Wynn Resorts' cash ratio has varied, with the lowest value of 1.03 in March 2024 and the highest value of 2.93 in June 2023. A cash ratio above 1 indicates that the company can cover its current liabilities with cash on hand, which is a positive sign of liquidity.
In summary, Wynn Resorts Limited has generally maintained healthy liquidity levels over the periods analyzed, as indicated by their current, quick, and cash ratios staying above 1 for most of the time. However, it is essential to monitor these ratios regularly to ensure the company can meet its short-term obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Wynn Resorts Limited has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024.
Initially, the company had a positive cash conversion cycle, indicating that it took a shorter time to convert its investments in inventory into cash. However, this trend reversed in December 31, 2020, where the cash conversion cycle increased significantly to 23.45 days, suggesting a delay in converting inventory into cash.
Subsequently, there was a notable improvement in the efficiency of the company's cash conversion cycle, with negative values recorded from December 31, 2021, onwards. This negative trend indicates that Wynn Resorts Limited was able to convert its inventory into cash more quickly than in previous periods.
The negative cash conversion cycle continued until December 31, 2024, with fluctuations in values. This consistent negative trend suggests that the company was managing its working capital effectively, possibly through efficient inventory management and collection of receivables.
Overall, the cash conversion cycle analysis indicates that Wynn Resorts Limited has been successful in optimizing its working capital management and improving its cash conversion efficiency over the period under consideration.