Hertz Global Holdings Inc (HTZ)
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 | — | — | — | — | — | 23.96 | 25.73 | 27.47 | 26.24 | 29.93 | — | — | 31.12 | 59.61 | 69.28 | 102.63 | 143.29 | 42.34 | 46.60 | 17.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 23.96 | 25.73 | 27.47 | 26.24 | 29.93 | 0.00 | 0.00 | 31.12 | 59.61 | 69.28 | 102.63 | 143.29 | 42.34 | 46.60 | 17.64 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle is a key metric that reflects how efficiently a company manages its working capital. For Hertz Global Holdings Inc, the cash conversion cycle experienced fluctuations over the period from March 31, 2020, to December 31, 2024.
Initially, the company's cash conversion cycle was relatively low at 17.64 days on March 31, 2020, indicating efficient management of cash, inventory, and receivables. However, there was a significant increase to 143.29 days by December 31, 2020, suggesting potential challenges in converting sales into cash.
Subsequently, Hertz Global Holdings Inc made improvements in its cash conversion cycle, with a steady decline to 31.12 days by December 31, 2021. This reduction indicates enhanced efficiency in managing working capital processes.
In the following periods, the company further optimized its cash conversion cycle, achieving a cycle of 0.00 days on March 31, 2022, June 30, 2022, and December 31, 2023. A cash conversion cycle of 0.00 days indicates that the company was able to collect cash from customers before paying its suppliers, effectively operating on a negative cycle.
By September 30, 2023, and December 31, 2023, the cash conversion cycle experienced a slight increase to 23.96 days, suggesting a moderate extension in converting resources into cash.
Overall, the fluctuation of Hertz Global Holdings Inc's cash conversion cycle over the years indicates varying efficiency levels in managing working capital. The company showed improvements by reducing the cycle duration, achieving negative cycle periods, which reflect effective cash and working capital management strategies.
Peer comparison
Dec 31, 2024