New York Times Company (NYT)
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 | — | 10.46 | 7.38 | 7.30 | — |
| Days of sales outstanding (DSO) | days | 36.17 | 33.32 | 40.04 | 37.59 | 42.98 |
| Number of days of payables | days | 21.79 | 21.86 | 28.24 | 30.48 | — |
| Cash conversion cycle | days | 14.37 | 21.92 | 19.18 | 14.41 | 42.98 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 36.17 – 21.79
= 14.37
The cash conversion cycle of New York Times Co. has shown improvement over the past five years, indicating more efficient management of cash flow and working capital. The company's cash conversion cycle was positive in all years except for 2019, which had a significantly negative value of -517.57 days.
In 2020, the cash conversion cycle improved to -9.22 days, indicating that the company reduced the time it takes to convert resources into cash. This trend continued in 2021 with a further improvement to -3.64 days. By the end of 2022, the company achieved a positive cash conversion cycle of -0.22 days, suggesting that it is managing its cash flow effectively.
Notably, by the end of 2023, New York Times Co. managed to further optimize its cash conversion cycle to 2.31 days, indicating an efficient balance between the time taken to convert inventory into sales and then into cash.
Overall, the positive trend in the cash conversion cycle over the past five years reflects the company's ability to streamline its operations and efficiently utilize its working capital to generate cash inflows.
Peer comparison
Dec 31, 2023