Lumen Technologies Inc (LUMN)

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 7.95 10.68 10.95 4.13 4.29
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 7.95 10.68 10.95 4.13 4.29

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.95 + — – —
= 7.95

The cash conversion cycle of Lumen Technologies Inc has shown some fluctuations over the past five years. In 2020, the company's cash conversion cycle was 4.29 days, which improved slightly to 4.13 days in 2021. However, there was a significant increase in the cash conversion cycle to 10.95 days in 2022, and a slightly lower but still elevated level of 10.68 days in 2023. The cycle then decreased to 7.95 days by the end of 2024.

A lower cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory and accounts receivable into cash. Conversely, a higher cash conversion cycle may suggest inefficiencies in managing working capital.

Overall, Lumen Technologies Inc's recent cash conversion cycle performance indicates some variability, with a notable increase in 2022 and 2023 before a partial recovery in 2024. Monitoring trends in the cash conversion cycle can provide insights into the company's liquidity management and operational efficiency.