EchoStar Corporation (SATS)
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 | 15.17 | 249.98 | 39.46 | 34.66 | 28.04 |
| Days of sales outstanding (DSO) | days | 26.83 | 43.08 | 36.57 | 37.28 | 39.79 |
| Number of days of payables | days | 17.65 | 408.74 | 41.86 | 43.29 | 43.69 |
| Cash conversion cycle | days | 24.35 | -115.69 | 34.18 | 28.65 | 24.13 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.17 + 26.83 – 17.65
= 24.35
The cash conversion cycle for EchoStar Corporation has shown fluctuating trends over the past five years. In 2023, the cash conversion cycle was 24.35 days, indicating that it takes approximately 24.35 days for the company to convert its investments in inventory back into cash. This suggests efficient management of working capital and indicates that the company is able to quickly convert its inventory into sales and then into cash.
In 2022, the cash conversion cycle was negative at -115.69 days, which could imply that the company was able to collect cash from customers before paying its suppliers, resulting in a negative cycle. This may indicate effective cash management or aggressive credit terms with customers.
In 2021 and 2020, the cash conversion cycle increased to 34.18 days and 28.65 days, respectively. This could imply that the company had a longer period between paying suppliers for inventory and receiving cash from customers, potentially indicating some inefficiencies in working capital management during those years.
However, in 2019, the cash conversion cycle was relatively lower at 24.13 days, similar to the 2023 figure, suggesting a quick turnaround of inventory into cash.
Overall, the fluctuating nature of the cash conversion cycle over the past five years indicates varying efficiencies in managing cash flows, inventory, and accounts receivables. It is crucial for EchoStar Corporation to continue monitoring and optimizing its cash conversion cycle to maintain healthy working capital levels and improve overall financial performance.
Peer comparison
Dec 31, 2023