EchoStar Corporation (SATS)
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 | 16.39 | 20.32 | 52.33 | 48.01 | 48.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 16.39 | 20.32 | 52.33 | 48.01 | 48.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.39 + — – —
= 16.39
The cash conversion cycle of EchoStar Corporation has shown variability over the past five years. In December 31, 2020, the cash conversion cycle was 48.05 days and remained relatively stable in December 31, 2021 at 48.01 days. However, there was a notable increase to 52.33 days by December 31, 2022, indicating a prolonged period for the company to convert its investments in inventory and other resources into cash.
Significantly, the cash conversion cycle decreased substantially to 20.32 days by December 31, 2023, suggesting an improvement in the company's efficiency in managing its working capital. This reduction may indicate better inventory management or quicker collection of receivables during this period.
Furthermore, in December 31, 2024, the cash conversion cycle decreased even further to 16.39 days, indicating a more efficient utilization of resources and a quicker turnover of cash in the business.
Overall, the trend in EchoStar Corporation's cash conversion cycle demonstrates fluctuations over the years, with notable improvements in efficiency in recent years, possibly due to enhanced working capital management strategies.
Peer comparison
Dec 31, 2024