Consolidated Communications (CNSL)

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 36.15 37.59 94.31 99.75 99.99 44.95 44.51
Days of sales outstanding (DSO) days 39.91 34.71 32.22 33.98 36.72 34.93 34.75 34.61 38.61 38.99 37.30 36.17 39.11 33.23 32.34 33.75 32.77 34.03 35.71 34.96
Number of days of payables days 60.57 22.98 27.41 33.69 17.19 30.93 61.11 42.18 70.66 82.07 76.18 48.57 44.98 38.35 27.64 30.59 46.27 50.22 66.02 38.31
Cash conversion cycle days -20.65 47.88 42.41 0.29 19.53 98.31 73.40 92.42 12.90 1.42 -38.88 -12.40 -5.87 -5.12 4.70 3.17 -13.50 -16.19 -30.30 -3.35

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 39.91 – 60.57
= -20.65

The cash conversion cycle of Consolidated Communications Holdings Inc has exhibited fluctuations over the past eight quarters. The company's cash conversion cycle, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from as low as -3.34 days to as high as 15.08 days during this period.

A negative cash conversion cycle implies that the company is efficiently managing its working capital, as it can collect revenue from sales before needing to pay vendors for inventory. However, a positive cash conversion cycle suggests a need for more efficient management of working capital, as the company is taking longer to collect cash from sales compared to paying for inventory.

The company experienced particularly high cash conversion cycle values in Q4 2022 and Q3 2022, indicating potential challenges in managing working capital efficiently during that period. Conversely, Q2 2023 and Q4 2023 saw negative cash conversion cycles, indicating improvements in the company's working capital management.

Overall, it is important for Consolidated Communications Holdings Inc to consistently monitor and optimize its cash conversion cycle to ensure effective management of working capital and maximize cash flows from its operational activities.


Peer comparison

Dec 31, 2023