Hilton Grand Vacations Inc (HGV)
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 | 794.43 | 962.34 | 1,004.83 | — | — |
| Days of sales outstanding (DSO) | days | 23.08 | 46.52 | 48.63 | 47.21 | 48.59 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 817.52 | 1,008.85 | 1,053.47 | 47.21 | 48.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 794.43 + 23.08 – —
= 817.52
The cash conversion cycle of Hilton Grand Vacations Inc has shown fluctuating trends over the years. In 2020, the company had a cash conversion cycle of 48.59 days, which decreased slightly to 47.21 days in 2021, indicating a slight improvement in managing its cash flows. However, there was a significant increase in the cash conversion cycle in 2022 and 2023, soaring to 1,053.47 days and 1,008.85 days, respectively.
It is noteworthy that such a substantial increase suggests potential challenges in efficiently turning its resources into cash within the business cycle. However, in 2024, there was a notable improvement as the cash conversion cycle reduced to 817.52 days, indicating a step towards better cash flow management.
Overall, Hilton Grand Vacations Inc should focus on effectively managing its cash conversion cycle to ensure optimal utilization of its resources and improve its liquidity position in the future.