Lumen Technologies Inc (LUMN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.50 | 7.03 | 7.35 | 8.31 | 9.66 | 11.46 | 10.14 | 10.57 | 10.95 | 8.04 | 6.66 | 5.60 | 4.13 | 4.35 | 4.77 | 4.13 | 4.29 | 4.43 | 4.65 | 4.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 6.50 | 7.03 | 7.35 | 8.31 | 9.66 | 11.46 | 10.14 | 10.57 | 10.95 | 8.04 | 6.66 | 5.60 | 4.13 | 4.35 | 4.77 | 4.13 | 4.29 | 4.43 | 4.65 | 4.44 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.50 + — – —
= 6.50
The cash conversion cycle of Lumen Technologies Inc has shown fluctuations over the past few years. In March 2020, the company's cash conversion cycle was 4.44 days, which decreased slightly to 4.13 days by March 2021. However, from June 2021, there was an upward trend in the cash conversion cycle, reaching 10.14 days by June 30, 2023.
During the next reporting periods, there was a slight improvement in the cash conversion cycle, with the cycle declining to 6.50 days by December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Lumen Technologies Inc's increasing cash conversion cycle in recent years may indicate potential challenges in managing working capital efficiently. A longer cash conversion cycle means that the company is taking more time to convert its investments into cash, which can indicate inefficiencies in inventory management, collection of accounts receivable, or payment of accounts payable.
Further analysis, alongside other financial metrics and industry benchmarks, would be necessary to understand the specific reasons behind the changes in Lumen Technologies Inc's cash conversion cycle and to assess the overall financial health and efficiency of the company.
Peer comparison
Dec 31, 2024