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.
Peer comparison
Dec 31, 2023