Choice Hotels International Inc (CHH)
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 | — | — | — | — | 14.82 | — | — | — | — | — | — | — | 18.71 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 14.82 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 18.71 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Choice Hotels International Inc's cash conversion cycle has shown significant fluctuations over the past few years. In December 2021, the company experienced a cash conversion cycle of 18.71 days, indicating a longer period to convert its investments in inventory and other resources into cash. This could be a cause for concern as a longer cash conversion cycle may tie up capital and impact liquidity.
However, in general, the company has managed to keep its cash conversion cycle quite low, often at 0.00 days, indicating that it efficiently manages its working capital and is able to quickly convert its assets into cash. This efficiency is positive as it allows the company to have a shorter operating cycle and access to cash for its operations.
In December 2023, there was a slight increase in the cash conversion cycle to 14.82 days, suggesting a temporary delay in cash flows. It would be important for the company to monitor and address this trend to ensure optimal utilization of resources.
Overall, based on the available data, Choice Hotels International Inc has demonstrated good control over its cash conversion cycle, with occasional fluctuations that may warrant further attention to maintain efficient working capital management.
Peer comparison
Dec 31, 2024