Marriot Vacations Worldwide (VAC)
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 | 86.21 | 79.55 | 89.79 | 107.69 | 128.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 86.21 | 79.55 | 89.79 | 107.69 | 128.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.21 + — – —
= 86.21
The cash conversion cycle of Marriot Vacations Worldwide has shown a decreasing trend over the years, starting at 128.44 days on December 31, 2020, and reaching 86.21 days on December 31, 2024. This indicates that the company is taking less time to convert its investments into cash during the specified period. A lower cash conversion cycle suggests improved efficiency in managing its working capital, potentially resulting from more efficient inventory management, faster collections from customers, or extended payment terms to suppliers. Overall, the decreasing trend in the cash conversion cycle reflects positive developments in Marriot Vacations Worldwide's cash flow management and operational efficiency.