Nexstar Broadcasting Group Inc (NXST)

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	—	1.55	—	—	26.27
Days of sales outstanding (DSO)	days	89.09	80.87	85.25	80.20	114.54
Number of days of payables	days	22.29	19.71	26.92	27.37	24.52
Cash conversion cycle	days	66.81	62.72	58.33	52.82	116.29

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 89.09 – 22.29
= 66.81

The cash conversion cycle of Nexstar Media Group Inc has shown fluctuations over the past five years. In 2023, the cash conversion cycle increased to 41.18 days compared to the previous year, indicating a longer time taken to convert its investments in inventory and other resources into cash receipts from sales. This may suggest potential inefficiencies in managing its working capital.

Looking back, in 2022 the company experienced a slightly lower cash conversion cycle of 39.61 days, which was still higher than in 2021 when it decreased to 31.54 days. The most significant improvement was seen in 2020 when the cash conversion cycle dropped to 27.03 days from a high of 106.15 days in 2019.

Overall, monitoring the cash conversion cycle can provide insights into Nexstar Media Group Inc's operational efficiency and effectiveness in managing its cash flows, inventory levels, and accounts receivables. The company should aim to optimize its cash conversion cycle to enhance liquidity and profitability in the long run.