Avis Budget Group Inc (CAR)
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 | — | — | — | — | 38.02 | 58.51 | 64.70 | 51.10 | 41.27 | 30.31 | — | 34.17 | 23.77 | 23.24 | 18.47 | 19.96 | 23.44 | 26.22 | 28.40 | 25.68 |
| Days of sales outstanding (DSO) | days | 27.36 | 27.89 | 27.29 | 24.12 | 24.65 | 26.90 | 28.27 | 27.41 | 30.37 | 36.64 | 43.86 | 57.14 | 43.72 | 35.33 | 26.39 | 28.86 | 36.25 | 35.13 | 36.96 | 36.80 |
| Number of days of payables | days | 52.70 | 59.62 | 75.94 | 71.54 | 70.31 | 116.33 | 118.44 | 106.57 | 81.94 | 67.17 | 70.81 | 76.72 | 58.18 | 53.04 | 43.55 | 40.72 | 37.87 | 38.68 | 40.43 | 41.47 |
| Cash conversion cycle | days | -25.34 | -31.73 | -48.65 | -47.42 | -7.64 | -30.92 | -25.47 | -28.06 | -10.29 | -0.22 | -26.95 | 14.59 | 9.31 | 5.53 | 1.31 | 8.09 | 21.83 | 22.68 | 24.93 | 21.01 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 27.36 – 52.70
= -25.34
The cash conversion cycle (CCC) for Avis Budget Group Inc has shown fluctuation over the past eight quarters. In Q1 2023, the CCC was at its lowest point of 24.12 days, indicating that the company was able to convert its investments in inventory and accounts receivable into cash more efficiently. However, in Q3 2022 and Q2 2022, the CCC peaked at 28.27 days and 28.27 days respectively, suggesting that the company took longer to convert its resources into cash during those periods.
Overall, Avis Budget Group Inc has managed to maintain a relatively stable CCC ranging between 24.12 days to 28.27 days over the past eight quarters. It is essential for the company to monitor and potentially improve its cash conversion cycle to ensure efficient management of its working capital and liquidity position.
Peer comparison
Dec 31, 2023