AMC Networks Inc (AMCX)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	2.17	2.83	2.62	2.52	2.60	113.12	110.29	90.86	71.99	52.81	58.07	46.43	58.12	45.98	49.18	47.15	55.79	46.21	41.14	39.34
Days of sales outstanding (DSO)	days	94.18	84.40	83.28	86.58	88.92	90.31	92.26	94.74	100.98	95.40	105.52	106.42	109.87	103.59	104.95	104.10	105.57	99.87	103.44	102.68
Number of days of payables	days	24.60	24.45	26.37	25.00	41.42	35.33	39.30	41.18	44.15	31.34	26.37	31.82	31.39	21.31	23.33	25.15	22.84	30.48	26.08	26.74
Cash conversion cycle	days	71.74	62.77	59.53	64.10	50.10	168.11	163.25	144.42	128.83	116.87	137.22	121.02	136.60	128.26	130.80	126.10	138.52	115.60	118.49	115.27

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.17 + 94.18 – 24.60
= 71.74

The cash conversion cycle of AMC Networks Inc has displayed some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 89.42 days, which was higher than the previous quarter at 80.08 days. This implies that it took longer for the company to convert its investments in inventory and other resources into cash during that period.

Despite the increase in Q4 2023, the cash conversion cycle remained relatively stable compared to Q2 2023 and Q3 2023, where it stood at 79.24 days and 82.69 days, respectively. The company experienced a slightly longer cycle in Q1 2023 with 85.13 days, which was higher than in the previous quarter but lower than in Q4 2023.

Comparing the latest quarters to the same periods in the previous year, there seems to be a slight improvement in the cash conversion cycle, as Q4 2022 had the highest cycle at 91.10 days, with a gradual decrease over the following quarters leading up to Q4 2023. This trend indicates that the company may have been more efficient in managing its working capital and converting its resources into cash over this timeframe.

Overall, AMC Networks Inc's cash conversion cycle has displayed fluctuations in the recent quarters, with some periods showing improvements while others experiencing slight increases. This metric is critical for assessing the company's liquidity and operational efficiency in managing its working capital.