Marriott International Inc (MAR)

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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	41.74	41.91	40.84	40.50	45.17	44.98	46.46	48.98	52.21	64.35	71.33	87.31	61.05	47.47	35.22	36.57	41.68	41.83	41.13	38.99
Number of days of payables	days	149.24	163.69	159.94	173.38	178.43	203.51	211.50	208.53	204.94	204.18	192.01	165.35	155.12	104.53	113.42	164.52	146.90	188.65	214.97	174.09
Cash conversion cycle	days	-107.49	-121.78	-119.10	-132.88	-133.26	-158.52	-165.05	-159.56	-152.74	-139.83	-120.68	-78.03	-94.08	-57.06	-78.21	-127.95	-105.21	-146.82	-173.83	-135.09

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.74 – 149.24
= -107.49

The cash conversion cycle of Marriott International, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 41.74 days, slightly lower compared to the previous quarter at 41.91 days. This trend continued from Q2 2023, where the cycle was 40.84 days, and Q1 2023, where it was 40.50 days.

Looking back further, in Q4 2022, Marriott's cash conversion cycle was relatively higher at 45.17 days. The company managed to improve its efficiency in Q3 2022 and Q2 2022, where the cycle was 44.98 days and -50.27 days, respectively. The significantly negative cycle in Q2 2022 indicates that Marriott was able to convert its inventory into cash very quickly during that quarter.

Overall, Marriott's recent cash conversion cycle performance suggests that the company has been able to manage its working capital effectively, allowing for more efficient conversion of inventory and receivables into cash. However, it is important for Marriott to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and operational efficiency.