Travel + Leisure Co (TNL)
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 | 245.80 | 244.84 | 270.29 | 346.21 | 336.29 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 245.80 | 244.84 | 270.29 | 346.21 | 336.29 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 245.80 + — – —
= 245.80
The cash conversion cycle for Travel + Leisure Co has exhibited some fluctuations over the past few years. As of December 31, 2020, the cash conversion cycle was 336.29 days, indicating that it took the company approximately 336 days to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the cash conversion cycle lengthened to 346.21 days, suggesting a slight delay in the company's ability to convert its assets into cash. However, by December 31, 2022, the cash conversion cycle improved significantly to 270.29 days, indicating more efficiency in managing working capital and converting investments into cash.
Subsequently, on December 31, 2023, the cash conversion cycle further decreased to 244.84 days, demonstrating continued progress in optimizing the company's liquidity and operational efficiency. Finally, as of December 31, 2024, the cash conversion cycle remained relatively stable at 245.80 days.
Overall, the trend in the cash conversion cycle for Travel + Leisure Co has shown fluctuations, with improvements in 2022 and 2023 compared to 2020 and 2021. Managing the cash conversion cycle effectively is crucial for the company's financial health and operational performance.
Peer comparison
Dec 31, 2024