Frontier Communications Parent Inc (FYBR)

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	—	—	—	—	—
Days of sales outstanding (DSO)	days	28.31	28.76	26.08	28.21	31.52
Number of days of payables	days	74.66	99.36	82.67	61.08	42.65
Cash conversion cycle	days	-46.35	-70.60	-56.60	-32.87	-11.13

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 28.31 – 74.66
= -46.35

Frontier Communications Parent Inc's cash conversion cycle has fluctuated over the past five years. The company's cash conversion cycle was negative in all the years, indicating that it is efficient in managing its cash flow.

The cash conversion cycle decreased from -11.13 days in 2019 to -46.35 days in 2023, which implies that the company's ability to convert its resources efficiently has improved over the years. A negative cash conversion cycle means that the company is able to collect cash from customers before it pays its suppliers, leading to a shorter operational cycle.

In 2022, the cash conversion cycle increased to -70.60 days, indicating a slight decline in efficiency compared to the previous years. However, the company managed to improve the cycle in subsequent years, reaching -46.35 days in 2023.

Overall, Frontier Communications Parent Inc has shown a positive trend in optimizing its cash conversion cycle, reflecting effective cash management strategies and operational efficiency over the years.