Booking Holdings Inc (BKNG)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 17.69 | 20.57 | 19.30 | — |
| Days of sales outstanding (DSO) | days | 52.33 | 45.13 | 43.60 | 20.19 | 30.55 |
| Number of days of payables | days | 104.75 | 92.97 | 80.75 | 42.10 | 128.70 |
| Cash conversion cycle | days | -52.42 | -30.15 | -16.58 | -2.60 | -98.15 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.33 – 104.75
= -52.42
The cash conversion cycle for Booking Holdings Inc has exhibited fluctuations over the past five years. In 2023, the cash conversion cycle increased to 55.57 days from 47.61 days in 2022, indicating that the company took longer to convert its investments in inventory and receivables into cash during the latest period. This suggests a potential inefficiency in managing working capital compared to the previous year.
Looking back, the trend shows an improving cash conversion cycle in 2021 compared to 2020, with a decrease from 45.23 days to 28.41 days, indicating a more efficient management of the company's short-term assets and liabilities in converting them into cash. However, in 2019, the cash conversion cycle increased to 40.70 days, signifying a slightly less efficient working capital management compared to 2021.
Overall, Booking Holdings Inc's cash conversion cycle has experienced fluctuations, with improvements seen in some years and deteriorations in others. Monitoring and analyzing this metric can provide insights into the company's efficiency in managing its working capital and cash flow conversion processes.
Peer comparison
Dec 31, 2023