Charter Communications Inc (CHTR)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	20.52	20.40	20.03	20.07	19.82	19.61	19.17	19.10	19.74	19.36	19.08	17.64	18.21	18.90	18.86	17.88	16.70	15.98	15.60	16.49
Number of days of payables	days	61.46	55.08	53.81	54.99	60.03	50.88	52.30	53.91	71.57	70.93	60.62	55.14	52.60	48.56	48.40	49.47	51.68	47.23	43.72	45.77
Cash conversion cycle	days	-40.94	-34.68	-33.77	-34.92	-40.21	-31.27	-33.13	-34.81	-51.84	-51.57	-41.54	-37.51	-34.39	-29.67	-29.54	-31.58	-34.98	-31.25	-28.11	-29.28

December 31, 2024 calculation

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

Charter Communications Inc has shown a fluctuating trend in its cash conversion cycle over the analyzed periods. The company's cash conversion cycle ranged from -29.28 days to -51.84 days, indicating that it takes the firm negative days to convert its investments in raw materials into cash.

In more recent periods, there has been a slight increase in the cash conversion cycle, with the cycle reaching its peak of -51.84 days on December 31, 2022. This suggests that the company may be taking longer to convert its investments into cash, which could be a result of changes in inventory management, accounts receivable, or accounts payable processes.

Overall, a negative cash conversion cycle implies that Charter Communications Inc is efficient in managing its working capital and turning its investments into cash quickly. However, monitoring the trend and identifying potential causes for the recent increase in the cycle can be crucial for the company's financial health and operational efficiency.