Charter Communications Inc (CHTR)

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	—	—	—	—	—
Days of sales outstanding (DSO)	days	20.52	19.82	19.74	18.21	16.70
Number of days of payables	days	61.46	60.03	71.57	52.88	51.98
Cash conversion cycle	days	-40.94	-40.21	-51.84	-34.67	-35.27

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 20.52 – 61.46
= -40.94

The cash conversion cycle measures how long it takes a company to convert its investments in inventory and other resources into cash received from sales. Looking at the data provided for Charter Communications Inc, we observe a consistent trend of negative cash conversion cycle values over the years. This indicates that the company is efficient in managing its working capital and can quickly convert its investments into cash.

Specifically, the cash conversion cycle for Charter Communications Inc was -35.27 days at the end of 2020, improving slightly to -34.67 days by the end of 2021. However, there was a significant increase to -51.84 days by the end of 2022, showing a longer period with which the company was able to convert its investments into cash. In the subsequent years, the cash conversion cycle remained negative, hovering around -40 days in both 2023 and 2024.

Overall, the consistently negative values of the cash conversion cycle for Charter Communications Inc indicate that the company is efficient in managing its working capital and converting its investments into cash quickly, which can be a positive indicator of financial health and operational efficiency.