Wynn Resorts Limited (WYNN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.44 | 1.09 | 1.00 | 1.19 |
| Quick ratio | 1.60 | 2.20 | 3.10 | 2.97 | 2.13 | 1.32 | 1.36 | 2.17 | 2.11 | 2.10 | 1.20 | 2.27 | 1.96 | 2.21 | 2.19 | 1.73 | 1.36 | 1.02 | 0.91 | 1.11 |
| Cash ratio | 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 | 1.19 | 0.87 | 0.76 | 0.97 |
The liquidity ratios of Wynn Resorts Ltd. have shown fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has generally been above 1, indicating that Wynn Resorts has had sufficient current assets to cover its current liabilities. However, the current ratio has ranged from a low of 1.42 in Q3 2022 to a high of 3.23 in Q2 2023, with an upward trend in recent quarters.
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 followed a similar trend to the current ratio, with values above 1 indicating a strong ability to meet short-term obligations without relying on inventory. The quick ratio has ranged from 1.38 in Q3 2022 to 3.18 in Q2 2023, showing an improvement in the company's liquidity position.
The cash ratio, the most conservative liquidity measure, focuses solely on the amount of cash and cash equivalents available to cover current liabilities. Wynn Resorts' cash ratio has also reflected a positive liquidity position, consistently above 1 across all quarters. The cash ratio has varied from 1.25 in Q3 2022 to 3.01 in Q2 2023, highlighting the company's ability to cover its short-term obligations with cash on hand.
Overall, the liquidity ratios of Wynn Resorts Ltd. indicate a strong liquidity position, with improvements in recent quarters. The company has demonstrated the ability to meet its short-term financial commitments and maintain a healthy level of liquidity, which is essential for financial stability and operational flexibility.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Wynn Resorts Ltd. has exhibited fluctuations over the past eight quarters, ranging from a low of 1.48 days to a high of 9.75 days. In Q4 2023, the cash conversion cycle stood at 6.02 days, showing an increase from the previous quarter. This indicates that Wynn Resorts took longer to convert its investments in inventory and accounts receivable into cash during the quarter.
Comparing year-over-year trends, the cash conversion cycle in Q4 2023 was higher than in the same quarter of the previous year (Q4 2022), suggesting a less efficient cash conversion process. However, the current cycle was notably lower than in Q3 2022, which may indicate improvements in managing working capital during the most recent quarter.
Overall, Wynn Resorts Ltd. should continue monitoring its cash conversion cycle closely to ensure efficient management of its working capital and timely conversion of assets into cash to support its operations and growth strategies.