Cable One Inc (CABO)

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	27.96	—	—	—	—	2.66	12.75	13.87	—	12.84	12.88	16.26	9.29	12.58	11.29	14.88	—	—	—	—
Days of sales outstanding (DSO)	days	23.02	20.90	17.92	11.02	18.00	15.60	18.27	14.01	20.42	19.51	19.52	12.73	22.32	28.06	19.74	17.16	13.67	0.60	0.94	1.64
Number of days of payables	days	23.56	22.65	18.08	17.90	20.68	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	27.42	-1.75	-0.16	-6.88	-2.68	18.26	31.02	27.88	20.42	32.35	32.40	28.98	31.61	40.64	31.03	32.04	13.67	0.60	0.94	1.64

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.96 + 23.02 – 23.56
= 27.42

The cash conversion cycle of Cable One Inc has shown fluctuations over the past 8 quarters. In Q1 2023, the company's cash conversion cycle was 9.90 days, indicating that it took approximately 9.90 days to convert its investments in inventory and other resources into cash received from sales. This suggests efficient management of working capital during that period.

However, in Q4 2023, the cash conversion cycle increased to 20.44 days, indicating a longer time taken to convert investments into cash. This may raise concerns about the company's liquidity and operational efficiency during that quarter.

Overall, the trend shows some variability in the cash conversion cycle, with fluctuations observed from quarter to quarter. It is important for Cable One Inc to continue monitoring and managing its working capital effectively to optimize its cash conversion cycle and ensure healthy liquidity in the long term.