Travel + Leisure Co (TNL)
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 | 282.74 | 282.82 | 268.57 | 253.37 | 244.84 | 248.60 | 252.57 | 257.26 | 270.46 | 278.12 | 304.04 | 305.02 | 346.21 | 188.90 | 229.78 | 278.51 | 336.29 | 25,569.21 | 8,183.68 | 3,585.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 282.74 | 282.82 | 268.57 | 253.37 | 244.84 | 248.60 | 252.57 | 257.26 | 270.46 | 278.12 | 304.04 | 305.02 | 346.21 | 188.90 | 229.78 | 278.51 | 336.29 | 25,569.21 | 8,183.68 | 3,585.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 282.74 + — – —
= 282.74
The cash conversion cycle of Travel + Leisure Co has shown fluctuations over the years, indicating varying efficiency in managing its operating cycle. From March 31, 2020, to September 30, 2020, the cash conversion cycle increased significantly, reaching a peak of 25,569.21 days. This may have been due to extended periods of accounts receivable collection and inventory turnover.
However, the company made significant improvements thereafter, with the cash conversion cycle decreasing to 188.90 days by September 30, 2021. This indicates that Travel + Leisure Co efficiently managed its cash, accounts receivable, and inventory during this period.
The trend continued positively through December 31, 2022, with the cash conversion cycle hovering around 270-305 days, showcasing the company's ability to quickly convert its resources into cash.
By December 31, 2024, the cash conversion cycle remained stable at 282.74 days, indicating that Travel + Leisure Co maintained its efficiency in managing working capital and operating cycles.
Overall, the fluctuations in the cash conversion cycle suggest that Travel + Leisure Co has experienced varying levels of efficiency in working capital management over the years, but the company appears to have made improvements to optimize its cash conversion cycle in recent periods.
Peer comparison
Dec 31, 2024