Expedia Group Inc. (EXPE)

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	—	15.13	73.85	93.46	45.58
Days of sales outstanding (DSO)	days	87.37	82.50	68.25	58.90	60.21
Number of days of payables	days	40.44	44.64	39.85	37.96	29.29
Cash conversion cycle	days	46.94	52.99	102.25	114.41	76.51

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 87.37 – 40.44
= 46.94

Expedia Group Inc.'s cash conversion cycle has shown fluctuations over the years based on the provided data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

- As of December 31, 2020, the cash conversion cycle stood at 76.51 days. This indicates that on average, it took Expedia Group Inc. approximately 76.51 days to convert its investments into cash flows.
- By December 31, 2021, the cash conversion cycle had increased to 114.41 days, suggesting a lengthening of the time taken for the company to convert investments into cash flows.
- In the following year, the cycle decreased to 102.25 days by December 31, 2022, reflecting an improvement in efficiency compared to the previous year.
- The cycle continued to decrease to 52.99 days by December 31, 2023, indicating a significant improvement in the efficiency of Expedia Group Inc.'s cash conversion process.
- Finally, by December 31, 2024, the cycle further decreased to 46.94 days, showing a continued efficiency in converting investments into cash flows.

Overall, the trend in Expedia Group Inc.'s cash conversion cycle demonstrates both challenges and improvements in efficiently managing its working capital and converting investments into cash over the years. It is essential for the company to continue monitoring and managing its cash conversion cycle to optimize its working capital and financial performance.