Marriot Vacations Worldwide (VAC)
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 | 93.74 | 94.95 | 79.24 | 85.57 | 94.34 | 106.71 | 86.53 | 89.78 | 90.36 | 92.15 | 98.40 | 100.02 | 107.69 | 115.78 | 138.08 | 141.91 | 128.44 | 121.72 | 113.43 | 105.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 93.74 | 94.95 | 79.24 | 85.57 | 94.34 | 106.71 | 86.53 | 89.78 | 90.36 | 92.15 | 98.40 | 100.02 | 107.69 | 115.78 | 138.08 | 141.91 | 128.44 | 121.72 | 113.43 | 105.53 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.74 + — – —
= 93.74
The cash conversion cycle of Marriot Vacations Worldwide has exhibited fluctuations over the periods presented in the data. The cycle started at 105.53 days as of March 31, 2020, peaked at 141.91 days by March 31, 2021, and has shown a general decreasing trend since then, indicating an improvement in the company's efficiency in managing its cash conversion cycle.
The company's cash conversion cycle decreased consistently from March 31, 2021, until December 31, 2022, reaching a low of 90.36 days. This downward trend suggests that Marriot Vacations Worldwide was able to reduce the time it takes to convert its investments in inventory and accounts receivables into cash during this period.
From December 31, 2022, to March 31, 2024, the cash conversion cycle has demonstrated some fluctuations but generally stayed below 100 days, indicating that the company has been able to maintain a relatively efficient conversion of its assets into cash.
Overall, the decreasing trend in Marriot Vacations Worldwide's cash conversion cycle indicates an improvement in the company's efficiency in managing its working capital and converting its assets into cash, which can positively impact its liquidity and financial performance.