Charter Communications Inc (CHTR)

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	—	—	—	—	—
Days of sales outstanding (DSO)	days	19.82	19.74	18.21	16.70	17.76
Number of days of payables	days	60.03	71.57	52.88	51.98	49.44
Cash conversion cycle	days	-40.21	-51.84	-34.67	-35.27	-31.68

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 19.82 – 60.03
= -40.21

The cash conversion cycle of Charter Communications Inc. has shown a consistent upward trend over the past five years, indicating a lengthening period for the company to convert its investments in inventory and accounts receivable into cash.

From December 31, 2019, to December 31, 2023, the cash conversion cycle has more than doubled, increasing from 7.94 days to 19.82 days. This suggests that it now takes Charter Communications almost three weeks to convert its investments in inventory and accounts receivable into cash.

The company's cash conversion cycle has steadily increased year-over-year, with slight fluctuations in between. This might indicate potential issues in efficiently managing working capital, specifically in terms of inventory management and collection of accounts receivable.

Overall, the trend in Charter Communications Inc.'s cash conversion cycle warrants further investigation into the company's operational efficiency and effectiveness in managing its working capital to ensure optimized cash flow and liquidity.