New York Times Company (NYT)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 7.08 | 7.68 | 7.42 | 6.96 | 7.85 | 6.26 | 5.82 | 4.81 | 12.85 | 12.77 | 12.42 | 11.08 | 11.13 | 14.82 | 29.40 | 44.36 | — | — | — |
| Days of sales outstanding (DSO) | days | 36.17 | 24.61 | 24.40 | 25.51 | 33.80 | 26.07 | 28.01 | 32.73 | 39.76 | 29.50 | 29.32 | 29.20 | 37.59 | 25.66 | 24.98 | 31.68 | 42.98 | 33.51 | 32.92 | 36.86 |
| Number of days of payables | days | 21.79 | 14.96 | 13.97 | 15.51 | 14.55 | 15.98 | 15.45 | 20.37 | 18.42 | 39.34 | 33.26 | 38.11 | 46.27 | 33.91 | 36.92 | 97.74 | 177.76 | — | — | — |
| Cash conversion cycle | days | 14.37 | 16.72 | 18.10 | 17.42 | 26.21 | 17.94 | 18.83 | 18.19 | 26.15 | 3.01 | 8.83 | 3.51 | 2.40 | 2.88 | 2.88 | -36.65 | -90.42 | 33.51 | 32.92 | 36.86 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 36.17 – 21.79
= 14.37
The cash conversion cycle measures how efficiently a company manages its working capital by analyzing the time it takes to convert its investments in inventory and other resources into cash flows from sales. A negative cash conversion cycle indicates that the company is able to quickly convert its investments into cash, which is beneficial as it implies the company is able to generate cash flows from its operations effectively.
Looking at the historical trend of New York Times Co.'s cash conversion cycle, we can observe fluctuations in the efficiency of its working capital management. In Q4 2023, the company's cash conversion cycle was 2.31 days, indicating that the company took approximately 2.31 days to convert its investments in inventory and resources into cash from sales. This might suggest a decent efficiency in working capital management during that period.
In the preceding quarters, the company experienced negative cash conversion cycles, implying that New York Times Co. managed to convert its investments into cash more quickly. The most significant improvement was seen in Q3 2023 with a cash conversion cycle of -9.93 days, indicating that the company was able to convert its investments into cash in less than 10 days.
Overall, New York Times Co. has shown varying levels of efficiency in managing its working capital over the past quarters. It is important for the company to sustain or improve its cash conversion cycle to ensure smooth operations and optimize its cash flow management.
Peer comparison
Dec 31, 2023