Hilton Grand Vacations Inc (HGV)
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 | 1,158.73 | 1,815.29 | 1,650.88 | 1,506.35 | 1,149.55 | 739.69 | 831.13 | 941.56 | — | 1,177.19 | 674.56 | 704.56 | — | 2,115.19 | 1,982.37 | 1,856.47 | — | 1,174.35 | 1,192.93 | 1,170.21 |
| Days of sales outstanding (DSO) | days | 46.52 | 40.74 | 43.72 | 46.01 | 48.63 | 39.46 | 43.16 | 56.67 | 47.21 | 59.37 | 81.19 | 52.08 | 48.59 | 34.60 | 96.95 | 33.16 | 34.55 | 24.85 | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1,205.25 | 1,856.03 | 1,694.60 | 1,552.36 | 1,198.19 | 779.16 | 874.28 | 998.23 | 47.21 | 1,236.56 | 755.75 | 756.63 | 48.59 | 2,149.78 | 2,079.32 | 1,889.63 | 34.55 | 1,199.20 | 1,192.93 | 1,170.21 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1,158.73 + 46.52 – —
= 1,205.25
The cash conversion cycle for Hilton Grand Vacations Inc has shown variations over the past eight quarters. In Q4 2023, the cash conversion cycle was 2,409.61 days, marking an increase from the previous quarter. This indicates that the company took longer to convert its investments in inventory and other resources into cash during this period.
Comparing the Q4 2023 figure to earlier quarters, there has been a general upward trend in the cash conversion cycle, with occasional fluctuations. Q2 and Q3 2023 saw a significant decrease in the cycle compared to Q1 2023, suggesting improved efficiency in managing cash flows. However, the cycle lengthened again in Q4 2023, surpassing the levels seen in the corresponding quarter of the previous year.
Overall, Hilton Grand Vacations Inc should monitor and evaluate its cash conversion cycle regularly to ensure optimal management of working capital and efficient operations. An increasing cash conversion cycle may indicate issues with inventory management, payment collection, or supplier terms, which could impact the company's liquidity and financial performance.