Comcast Corp (CMCSA)

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	40.30	41.47	38.09	37.66	40.41
Number of days of payables	days	271.60	313.63	196.62	201.33	199.41
Cash conversion cycle	days	-231.30	-272.16	-158.53	-163.67	-159.00

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 40.30 – 271.60
= -231.30

Comcast Corp's cash conversion cycle has shown a generally negative trend over the past five years, indicating efficient management of working capital. The company's cash conversion cycle decreased from -159.00 days in December 2020 to -163.67 days in December 2021, before improving to -158.53 days in December 2022. However, there was a significant spike in the cash conversion cycle to -272.16 days in December 2023, followed by a decrease to -231.30 days in December 2024.

The negative values for the cash conversion cycle indicate that Comcast Corp is able to generate cash from its operating cycle before it needs to pay its suppliers, which is a sign of strong liquidity and effective management of operating activities. The fluctuation in the cash conversion cycle may be influenced by changes in the company's operating efficiency, sales trends, collection policies, or payment terms with suppliers.

Overall, the trend of a negative cash conversion cycle suggests that Comcast Corp has been successful in managing its working capital efficiently, allowing the company to convert its inventory and accounts receivable into cash quickly, thereby improving its overall liquidity position.