Booking Holdings Inc (BKNG)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	22.05	28.88	22.89	17.69	24.05	20.55	18.10	20.57	21.75	18.68	19.04	19.30	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	52.33	58.26	51.80	38.32	45.13	50.16	53.56	45.01	43.60	48.72	46.27	25.97	20.19	28.84	11.95	—	30.55	43.68	48.83	37.70
Number of days of payables	days	131.08	97.94	72.22	74.52	92.97	83.74	93.56	68.93	80.75	80.91	57.83	37.94	42.10	67.10	43.79	69.72	128.70	135.81	140.82	106.01
Cash conversion cycle	days	-78.76	-17.62	8.46	-13.30	-30.15	-9.52	-19.45	-5.81	-16.58	-10.45	7.11	7.07	-2.60	-38.26	-31.83	-69.72	-98.15	-92.13	-91.99	-68.31

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 52.33 – 131.08
= -78.76

The cash conversion cycle of Booking Holdings Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 55.57 days, which decreased from the previous quarter but was higher compared to Q4 2022. This indicates that the company took less time to convert its investments in inventory into cash during this quarter.

In Q3 2023, the cash conversion cycle increased to 60.99 days, suggesting that the company took longer to convert its inventory into cash compared to the previous quarter. This trend continued from Q3 2022 when the cash conversion cycle was 52.03 days.

Q2 2023 saw a decrease in the cash conversion cycle to 52.94 days, showing an improvement in the company's efficiency in converting its inventory into cash. However, in Q1 2023, the cash conversion cycle decreased significantly to 41.13 days, indicating that the company was able to convert its inventory into cash more quickly during this period.

Comparing the data to the same quarters in 2022, it is evident that Booking Holdings Inc has generally experienced fluctuations in its cash conversion cycle. The company's performance in managing its inventory and receivables has varied over these quarters, impacting its overall cash conversion efficiency.

Overall, the analysis of the cash conversion cycle for Booking Holdings Inc highlights the importance of monitoring and managing working capital effectively to ensure smooth operations and financial stability.