Hertz Global Holdings Inc (HTZ)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 26.23 29.13 166.81 26.81
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 0.00 26.23 29.13 166.81 26.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Hertz Global Holdings Inc. has shown an increasing trend over the three years under review. It has lengthened from 37.71 days at the end of 2021 to 40.93 days at the end of 2022, and further extended to 46.39 days as of December 31, 2023. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash.

A longer cash conversion cycle can be a sign of inefficiency in managing working capital, as it suggests that the company is taking more time to sell its inventory and collect payments from customers. This may result in increased holding costs and potential liquidity challenges.

Monitoring and managing the cash conversion cycle is important for Hertz Global Holdings Inc. to optimize working capital management and improve cash flow efficiency. Analyzing the underlying reasons for the increase in the cash conversion cycle can help the company identify areas for improvement and implement strategies to shorten the cycle and enhance overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Hertz Global Holdings Inc
HTZ
0.00
Avis Budget Group Inc
CAR
-25.33
Ryder System Inc
R
-148.66