Avis Budget Group Inc (CAR)
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 | — | — | 74.78 | 49.55 | 34.85 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 74.78 | 49.55 | 34.85 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Avis Budget Group Inc has shown fluctuations over the years. In December 31, 2020, the company's cash conversion cycle was 34.85 days, indicating that it took the company approximately 34.85 days to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the cash conversion cycle had increased to 49.55 days, suggesting that the company took longer to convert its investments into cash during that period. This increase could indicate potential challenges in managing working capital efficiently.
The trend continued to worsen by December 31, 2022, with a cash conversion cycle of 74.78 days. This significant increase could raise concerns about the company's ability to effectively manage its operating cycle and liquidity position.
Interestingly, for both December 31, 2023, and December 31, 2024, the cash conversion cycle was reported as 0.00 days, which is unusual and might signal missing or incomplete data for those periods. This anomaly could distort the overall trend analysis and make it difficult to draw meaningful conclusions about the company's working capital efficiency during those years.
Overall, the fluctuations in Avis Budget Group Inc's cash conversion cycle suggest the need for continuous monitoring and improvement in managing working capital to enhance liquidity, operational efficiency, and financial performance.
Peer comparison
Dec 31, 2024