Comcast Corp (CMCSA)

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	—	—	—	—	65.05
Days of sales outstanding (DSO)	days	41.47	38.09	37.66	40.41	37.83
Number of days of payables	days	313.63	196.62	201.33	199.41	181.64
Cash conversion cycle	days	-272.16	-158.53	-163.67	-159.00	-78.76

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.47 – 313.63
= -272.16

The cash conversion cycle of Comcast Corp has shown some fluctuations over the past five years. The cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from 37.66 days to 41.47 days during this period.

In 2023, the cash conversion cycle increased to 41.47 days from 38.09 days in 2022. This indicates a potential slowdown in the company's ability to convert its resources into cash. While this could be influenced by a variety of factors, such as changes in inventory management or payment terms with customers, it is essential for the company to carefully monitor and manage this metric to ensure efficient use of its resources and sustained cash flows.

It is notable that the cash conversion cycle was relatively stable between 2019 and 2021, ranging from 37.83 to 40.41 days. This suggests that the company had been relatively effective in managing its working capital during that period.

Overall, fluctuations in the cash conversion cycle can provide insights into a company’s operational efficiency and financial health, and Comcast Corp may benefit from further analysis to understand the underlying factors driving these changes.