Hertz Global Holdings Inc (HTZ)
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 | — | — | 30.68 | 31.10 | 143.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 30.68 | 31.10 | 143.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Hertz Global Holdings Inc experienced a notable improvement in its cash conversion cycle over the years, reflecting more efficient management of its operating cycle. As of December 31, 2020, the company's cash conversion cycle stood at 143.32 days, indicating a relatively long period required to convert its investments in inventory and receivables into cash.
However, there was a significant reduction in the cash conversion cycle by the end of December 31, 2021, where it decreased to 31.10 days. This substantial improvement suggests that the company managed to streamline its operations, leading to a quicker conversion of resources into cash.
Further progress was seen in the following years, with the cash conversion cycle dropping to 30.68 days by December 31, 2022, signaling sustained efficiency in managing working capital. Notably, by the end of both December 31, 2023, and December 31, 2024, the cash conversion cycle hit 0.00 days, potentially indicating that the company could be operating on a just-in-time basis or maintaining a highly optimized working capital cycle.
Overall, the consistent decline in Hertz Global Holdings Inc's cash conversion cycle reflects effective management of its cash flows and working capital, enabling the company to convert its resources into cash more swiftly, potentially improving liquidity and overall financial performance.
Peer comparison
Dec 31, 2024