Avis Budget Group Inc (CAR)
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 | — | — | — | 18.62 | — | — | — | — | 74.78 | 78.68 | 85.50 | 65.59 | 49.55 | 52.32 | — | 50.48 | 34.59 | 33.72 | 27.08 | 29.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 18.62 | 0.00 | 0.00 | 0.00 | 0.00 | 74.78 | 78.68 | 85.50 | 65.59 | 49.55 | 52.32 | 0.00 | 50.48 | 34.59 | 33.72 | 27.08 | 29.74 |
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 fluctuating trends over the past few years. In March 2020, the cycle was 29.74 days, indicating that the company took approximately 30 days to convert its investments in inventory and other resources back into cash.
However, by June 2020, the cycle had reduced to 27.08 days, suggesting an improvement in the company's efficiency in managing its working capital. The cycle then increased to 33.72 days by September 2020 and further to 34.59 days by December 2020, indicating potential challenges in managing cash flow and working capital.
In March 2021, there was a significant jump in the cash conversion cycle to 50.48 days, indicating that Avis Budget Group Inc took longer to convert its investments into cash during that period. Surprisingly, the cycle dropped to 0 days by June 2021, which could potentially imply more efficient management of cash flow or changes in the company's business operations.
Subsequently, the cycle increased again to 52.32 days in September 2021 and 49.55 days in December 2021, highlighting fluctuations in the company's working capital management. The cycle peaked at 85.50 days in June 2022, indicating potential challenges in converting investments into cash efficiently.
In the following quarters, the cash conversion cycle fluctuated between 0 days and around 75 days. The cycle in March 2024 stood at 18.62 days, suggesting improved efficiency in working capital management compared to previous periods.
Overall, the analysis of Avis Budget Group Inc's cash conversion cycle demonstrates variability in the company's ability to efficiently convert investments into cash over the years, with periods of both improvement and challenges in working capital management.
Peer comparison
Dec 31, 2024