Airbnb Inc (ABNB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 4.66 | |||
| Days of sales outstanding (DSO) | days | 7.57 | 7.80 | 8.72 | 7.72 | 6.99 | 6.88 | 8.46 | 6.82 | 7.29 | |||
| Number of days of payables | days | 30.22 | 35.75 | 22.73 | 37.57 | 33.36 | 38.44 | 37.37 | 37.00 | 37.26 | |||
| Cash conversion cycle | days | -22.65 | -27.95 | -14.01 | -29.85 | -26.37 | -31.56 | -28.91 | -30.18 | -25.31 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 7.57 – 30.22
= -22.65
The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A negative cash conversion cycle indicates that the company is able to finance its operations using funds generated from its sales before having to pay its suppliers.
Based on the data provided for Airbnb Inc, the cash conversion cycle has been varying over the past eight quarters. In Q4 2023, the cash conversion cycle was reported at 0.00 days, indicating that the company was able to convert its investments into cash very quickly during that period. This is a significant improvement compared to the previous quarter (Q3 2023) where the cash conversion cycle was -35.75 days, signifying even faster conversion.
Overall, the trend in the cash conversion cycle for Airbnb Inc has shown fluctuations, with some quarters experiencing faster cash conversion cycles than others. It is important for the company to monitor this metric closely, as a shorter cash conversion cycle generally signifies better liquidity and operational efficiency.
Peer comparison
Dec 31, 2023