Melco Resorts and Entertainment (MEX:MLCON) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Melco Resorts and Entertainment Cash Conversion Cycle Related Terms
Melco Resorts and Entertainment Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Melco Resorts and Entertainment Cash Conversion Cycle Chart
MEX:MLCON vs MCRI, PENN, VAC: Cash Conversion Cycle Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Melco Resorts and Entertainment Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's Cash Conversion Cycle falls into.
Melco Resorts and Entertainment Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Melco Resorts and Entertainment (MEX:MLCON) has a Cash Conversion Cycle of 10.37 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Melco Resorts and Entertainment and its competitors.
Is Melco Resorts and Entertainment's Cash Conversion Cycle too high?
Melco Resorts and Entertainment's current Cash Conversion Cycle is 10.37. The Travel & Leisure industry median Cash Conversion Cycle is 10.23. Melco Resorts and Entertainment's value of 10.37 is 1.4% above this industry median. Overall, Melco Resorts and Entertainment has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's Cash Conversion Cycle compare to MCRI and PENN?
Melco Resorts and Entertainment's Cash Conversion Cycle of 10.37 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.23. Melco Resorts and Entertainment's value of 10.37 is 1.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Travel & Leisure company?
The median Cash Conversion Cycle among Travel & Leisure companies is 10.23, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco Resorts and Entertainment's current Cash Conversion Cycle of 10.37 is 1.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Melco Resorts and Entertainment and its competitors. For the Travel & Leisure industry, the median Cash Conversion Cycle is 10.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current Cash Conversion Cycle is 10.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco Resorts and Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Melco Resorts and Entertainment (MEX:MLCON) is currently considered Possible Value Trap. The stock's GF Value™ is MXN216.26, compared to a current price of MXN94.00 — trading 56.5% below its estimated fair value. The current Cash Conversion Cycle is 10.37 and 1.4% above the Travel & Leisure industry median of 10.23. Melco Resorts and Entertainment's overall GF Score™ is 57/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Melco Resorts and Entertainment (MEX:MLCON), the current Cash Conversion Cycle is 10.37 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melco Resorts and Entertainment (MEX:MLCON) Overvalued in 2026?
Based on GuruFocus' analysis, Melco Resorts and Entertainment stock appears to be undervalued.
The current stock price of MXN94.00 is trading 56.5% below its estimated GF Value™ of MXN216.26.
GuruFocus considers Melco Resorts and Entertainment to be Possible Value Trap.
Key valuation signals for MEX:MLCON:
Cash Conversion Cycle: 10.37
GF Value™: MXN216.26 vs. price of MXN94.00 (56.5% below fair value)
Industry Position: 1.4% above the Travel & Leisure median
No single metric tells the full story. See the MEX:MLCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco Resorts and Entertainment Business Description
Melco Resorts & Entertainment is one of only six licensed casino operators in Macao. It operates Altira, a complex focused on premium customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium patrons; and Mocha Clubs' electronic gaming machines. The company also has a majority interest in Studio City, which opened in 2015. Outside Macao, Melco owns City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The business mix in terms of adjusted EBITDA was about 84% from Macao, with the rest from overseas as of 2025.
57GF Score
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