Charter Communications Inc (CHTR)

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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	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	17.76	18.43	16.91	13.04
Number of days of payables	days	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	48.78	39.30	47.90	40.75
Cash conversion cycle	days	-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	-31.02	-20.87	-30.99	-27.72

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 been relatively stable over the past eight quarters, ranging from 17.64 days to 19.82 days. This metric measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash flows from sales. A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash from its operations.

Charter Communications Inc.'s cash conversion cycle has been hovering around the 19-day mark, which suggests that the company is efficient in managing its inventory and accounts receivable, converting them into cash relatively quickly. This indicates that the company has a tight control over its working capital, allowing it to operate effectively and potentially invest in growth opportunities.

Overall, the consistency and relatively low values of Charter Communications Inc.'s cash conversion cycle reflect positively on the company's ability to efficiently manage its working capital and generate cash from its core operations.