Avis Budget Group Inc (CAR)
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 | — | 38.01 | 27.94 | 23.77 | 23.44 |
| Days of sales outstanding (DSO) | days | 27.36 | 24.65 | 30.37 | 43.72 | 36.25 |
| Number of days of payables | days | 52.68 | 70.29 | 55.47 | 58.18 | 37.87 |
| Cash conversion cycle | days | -25.33 | -7.63 | 2.84 | 9.31 | 21.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 27.36 – 52.68
= -25.33
The cash conversion cycle of Avis Budget Group Inc has fluctuated over the past five years, indicating changes in the company's efficiency in managing its cash flows related to its operations.
In 2023, the cash conversion cycle was 27.36 days, which represents the time it takes for the company to convert its investments in inventory and accounts receivable into cash received from customers. This shows an improvement compared to 2022 when the cycle was 24.65 days.
In 2021, the cycle was longer at 30.37 days, suggesting a slightly less efficient cash management compared to the previous year. The cycle was significantly longer in 2020 at 43.72 days, indicating possible challenges in inventory management or collection of receivables during that period.
However, in 2019, the cycle decreased to 36.25 days, reflecting a better performance in managing working capital compared to the previous year.
Overall, fluctuations in the cash conversion cycle of Avis Budget Group Inc indicate varying levels of efficiency in managing its working capital over the past five years, with improvements seen in recent years compared to earlier periods.
Peer comparison
Dec 31, 2023