Booking Holdings Inc (BKNG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 286.83 | 246.18 | 191.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 286.83 | 246.18 | 191.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle is a key metric used to assess the efficiency of a company's working capital management. Booking Holdings Inc's cash conversion cycle has fluctuated over the years based on the provided data.
As of December 31, 2020, the cash conversion cycle was 191.60 days, indicating that it took the company approximately 191.60 days to convert its investments in inventory and other resources back into cash.
By December 31, 2021, the cash conversion cycle had increased to 246.18 days, suggesting a longer period for Booking Holdings Inc to convert its resources into cash, which may imply challenges in managing working capital efficiently.
By December 31, 2022, the cash conversion cycle extended further to 286.83 days, indicating a prolonged cycle in converting investments into cash and potentially impacting the company's cash flow and liquidity position.
Remarkably, by December 31, 2023, the cash conversion cycle dropped to 0.00 days, which could suggest an improvement in efficiency or a change in the company's operations that resulted in the immediate conversion of investments into cash.
Similarly, on December 31, 2024, the cash conversion cycle was also 0.00 days, indicating that Booking Holdings Inc may have optimized its working capital management significantly to swiftly convert investments into cash.
Overall, fluctuations in the cash conversion cycle can provide insights into the company's operational efficiency, financial health, and working capital management strategies. It is essential for Booking Holdings Inc to monitor and manage its cash conversion cycle effectively to ensure optimal use of its resources and maintain strong liquidity levels.
Peer comparison
Dec 31, 2024