Booking Holdings Inc (BKNG)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 380.09 | 492.66 | 386.85 | 286.83 | 381.85 | 306.45 | 243.95 | 246.18 | 140.17 | 85.40 | 60.80 | 60.21 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 380.09 | 492.66 | 386.85 | 286.83 | 381.85 | 306.45 | 243.95 | 246.18 | 140.17 | 85.40 | 60.80 | 60.21 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle is a key metric that reflects how efficiently a company manages its working capital. For Booking Holdings Inc, the cash conversion cycle has fluctuated over the years, indicating varying levels of efficiency in its cash management.
From the data provided, the cash conversion cycle for Booking Holdings Inc was consistently at 0 days for the periods ending March to June 2020. This suggests that during this period, the company was able to convert its investments in inventory and accounts receivable into cash quickly.
However, starting from December 2020, the cash conversion cycle began to increase significantly, reaching its peak at 492.66 days for the period ending June 30, 2023. This substantial increase indicates that Booking Holdings Inc was taking longer to collect payments from customers and convert inventory into sales, which can lead to liquidity challenges and inefficiencies in managing working capital.
Subsequently, the cash conversion cycle decreased to 380.09 days for the period ending September 30, 2023, before dropping to 0 days by the end of December 2023 and maintaining 0 days through December 2024. This improvement suggests that Booking Holdings Inc made efforts to streamline its cash conversion process, possibly by optimizing inventory levels and tightening credit policies to accelerate cash inflows.
Overall, the fluctuation in Booking Holdings Inc's cash conversion cycle indicates periods of efficient working capital management followed by challenges in cash conversion efficiency. Investors and stakeholders should closely monitor this metric to assess the company's ability to effectively manage its cash flow and working capital in the future.
Peer comparison
Dec 31, 2024