Expedia Group Inc. (EXPE)

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	59.51	55.42	100.13	100.22	73.85	77.84	126.93	128.32	93.46	97.53	179.29	165.92	45.58	45.95	93.46	63.39	131.45	78.44	112.13	81.95
Days of sales outstanding (DSO)	days	82.19	83.54	89.25	78.71	67.43	65.50	77.68	69.19	58.81	86.65	129.08	140.17	60.42	51.04	45.41	47.28	79.20	85.19	96.08	90.11
Number of days of payables	days	44.64	43.61	42.97	40.77	39.85	49.56	54.25	46.40	37.96	47.26	54.89	47.54	29.29	33.02	36.93	66.98	152.88	169.34	208.86	189.37
Cash conversion cycle	days	97.07	95.35	146.41	138.17	101.43	93.78	150.36	151.12	114.31	136.92	253.48	258.55	76.71	63.97	101.94	43.69	57.77	-5.71	-0.65	-17.32

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.51 + 82.19 – 44.64
= 97.07

The cash conversion cycle of Expedia Group Inc has experienced fluctuations over the past eight quarters. The company's cash conversion cycle has been relatively volatile, moving both positive and negative. In Q1 2022, the cycle stood at -444.05 days, indicating a relatively efficient management of cash flow and working capital. However, in the subsequent quarters, the cycle deteriorated, reaching a low of -642.96 days in Q4 2023.

Overall, the negative values suggest that Expedia Group Inc's cash conversion cycle is characterized by a rapid turnover of cash, implying that the company is able to convert its investments in inventory and accounts receivable into cash quickly. This can be advantageous as it allows the company to finance its operations efficiently. However, the substantial negative values also indicate that Expedia Group Inc may be holding onto cash for extended periods, potentially missing out on investment opportunities or not utilizing cash effectively.

The fluctuations in the cash conversion cycle highlight the importance of closely monitoring working capital management and cash flow efficiency within Expedia Group Inc. It would be beneficial for the company to focus on optimizing its cash conversion cycle to ensure effective management of working capital and maximize cash flow performance.