EchoStar Corporation (SATS)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 13.58 | 7.36 | 10.69 | 14.18 | 18.54 | 95.97 | 67.98 | 59.89 | 52.33 | 49.32 | 48.28 | 49.21 | 48.01 | 49.03 | 46.73 | 47.74 | 48.05 | 44.84 | 39.38 | 40.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 13.58 | 7.36 | 10.69 | 14.18 | 18.54 | 95.97 | 67.98 | 59.89 | 52.33 | 49.32 | 48.28 | 49.21 | 48.01 | 49.03 | 46.73 | 47.74 | 48.05 | 44.84 | 39.38 | 40.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.58 + — – —
= 13.58
The cash conversion cycle of EchoStar Corporation has shown fluctuating trends over the specified periods. Initially, the cash conversion cycle was around 40 days in early 2020, indicating that the company took approximately 40 days to convert its investments in inventory to cash flows from sales.
In the subsequent quarters, the cash conversion cycle varied between 39 to 48 days, suggesting some level of efficiency in managing its working capital and sales collection processes. However, towards the end of 2021 and into 2022, there was a slight increase in the cycle, reaching around 50 days, which could indicate delays in cash collections or increased inventory holding periods.
Interestingly, by the end of 2023, there was a significant spike in the cash conversion cycle to 95 days, signifying a potential inefficiency in managing working capital and cash flows. This could be attributed to extended collection periods or excessive inventory levels relative to sales.
In the following periods, the cash conversion cycle drastically decreased to as low as 7 days by September 2024, indicating a remarkable improvement in the company's ability to enhance cash flows and efficiently manage working capital. This sharp decrease could result from more efficient inventory management, quicker sales conversions, or improved collection processes.
Overall, EchoStar Corporation's cash conversion cycle has experienced fluctuations, highlighting periods of efficiency and inefficiency in managing its working capital and cash flow conversion processes. Analyzing these trends can provide insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024