Marriot Vacations Worldwide (VAC)
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 | 139.99 | 168.58 | 200.33 | 244.30 | 18.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 139.99 | 168.58 | 200.33 | 244.30 | 18.27 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 139.99 + — – —
= 139.99
Marriott Vacations Worldwide Corp's cash conversion cycle has shown fluctuations over the past five years. The company's cash conversion cycle, a measure of how long it takes for a company to convert its resources into cash flows, decreased from 377.87 days in 2019 to 294.72 days in 2022, suggesting an improvement in efficiency in managing cash flows during this period.
However, in 2023, the cash conversion cycle increased to 299.45 days, indicating a slight slowdown in cash conversion compared to the previous year. Furthermore, in 2021 and 2020, the cash conversion cycle was significantly higher at 366.68 days and 487.50 days, respectively, which might indicate challenges in managing working capital efficiently during those years.
Overall, Marriott Vacations Worldwide Corp's cash conversion cycle has shown variability, with improvements in efficiency in some years but challenges in others. Further analysis of the company's working capital management practices and operating cycle dynamics could provide insights into areas for potential optimization.