Expedia Group Inc. (EXPE)

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	—	—	—	20.50	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
Days of sales outstanding (DSO)	days	88.18	105.92	117.76	108.95	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
Number of days of payables	days	40.44	50.61	56.71	50.19	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
Cash conversion cycle	days	47.74	55.31	61.04	79.26	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 88.18 – 40.44
= 47.74

The cash conversion cycle of Expedia Group Inc. is a key metric that reflects the efficiency of the company in managing its cash flows related to its operations. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data provided for Expedia Group Inc.'s cash conversion cycle from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of the company's cash conversion over time. The company's cash conversion cycle ranged from a low of 43.69 days on March 31, 2020, to a peak of 258.55 days on March 31, 2021. This significant increase in the cash conversion cycle indicates a longer period for Expedia Group Inc. to recover its cash invested in inventory and operations.

Subsequently, there was a gradual improvement in the cash conversion cycle, with a noticeable decrease to 47.74 days by December 31, 2024. This reduction suggests that Expedia Group Inc. was able to enhance its operational efficiency and manage its working capital more effectively during this period.

Overall, fluctuations in Expedia Group Inc.'s cash conversion cycle highlight the company's ability to streamline its operations, manage inventory levels, collect receivables, and payables efficiently. A lower cash conversion cycle indicates improved liquidity and operational efficiency, while a higher cycle may indicate inefficiencies that could impact the company's financial performance and cash flow management.