Marriott International Inc (MAR)
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 | — | — | 1,064.23 | 704.96 | 661.86 |
| Days of sales outstanding (DSO) | days | 41.74 | 45.17 | 52.21 | 61.05 | 41.68 |
| Number of days of payables | days | 149.24 | 178.43 | 204.94 | 124.50 | 146.90 |
| Cash conversion cycle | days | -107.49 | -133.26 | 911.50 | 641.50 | 556.64 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.74 – 149.24
= -107.49
The cash conversion cycle for Marriott International, Inc. has shown fluctuations over the past five years. In 2023, the company was able to convert its inventory and accounts receivable into cash within an average of 41.74 days, showing an improvement compared to the previous year's figure of 45.17 days. This indicates that Marriott managed its working capital more efficiently in 2023.
Looking back, in 2021 and 2020, the cash conversion cycle was 52.21 days and 61.05 days, respectively, indicating a longer period required to convert inventory and receivables into cash. However, the company showed a positive trend in 2019 when the cash conversion cycle was at its lowest point over the five-year period at 41.68 days.
Overall, Marriott International's management of its cash conversion cycle has been mixed over the years, with improvements seen in 2023, suggesting better working capital management practices. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023