EchoStar Corporation (SATS)
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 | 15.17 | 68.40 | 60.94 | 56.35 | 249.98 | 45.16 | 42.68 | 42.33 | 39.46 | 39.03 | 35.94 | 35.03 | 34.67 | 32.95 | 29.37 | 29.50 | 26.19 | 24.99 | 21.74 | 20.31 |
| Days of sales outstanding (DSO) | days | 74.71 | 47.00 | 45.54 | 49.08 | 43.08 | 46.02 | 42.96 | 39.70 | 36.57 | 36.37 | 34.36 | 35.77 | 36.91 | 38.10 | 36.56 | 35.58 | 35.43 | 38.48 | 36.90 | 40.63 |
| Number of days of payables | days | 17.65 | 33.60 | 36.65 | 35.12 | 408.74 | 37.14 | 40.01 | 42.10 | 41.86 | 41.98 | 45.44 | 39.01 | 43.29 | 39.04 | 39.63 | 35.78 | 40.82 | 36.65 | 31.40 | 30.89 |
| Cash conversion cycle | days | 72.22 | 81.80 | 69.83 | 70.31 | -115.69 | 54.05 | 45.63 | 39.94 | 34.18 | 33.42 | 24.87 | 31.79 | 28.29 | 32.01 | 26.30 | 29.31 | 20.81 | 26.82 | 27.24 | 30.05 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.17 + 74.71 – 17.65
= 72.22
The cash conversion cycle measures the time it takes for a company to convert its investment in inventory into cash received from the sale of products. A positive cash conversion cycle indicates that a company's cash is tied up in the production process, while a negative cycle suggests that the company receives cash from customers before paying suppliers.
Looking at the data provided for EchoStar Corporation over the past few quarters, we observe fluctuations in the cash conversion cycle. In the most recent quarter of December 31, 2023, the cash conversion cycle was 72.22 days, representing the time it takes for EchoStar to turn its inventory and accounts receivable into cash received from customers. This indicates that the company is taking a little over two months to convert its investments into cash.
Comparing this to the previous quarters, we see a trend of improvement in the cash conversion cycle from the negative cycle of -115.69 days reported in December 31, 2022. This improvement suggests that EchoStar has been managing its working capital more efficiently over time.
Analyzing the historical data, we see that there have been fluctuations in the cash conversion cycle, indicating changes in the company's operational efficiency and management of working capital. It is essential for EchoStar to continue monitoring its cash conversion cycle closely to ensure optimal use of resources and timely cash flow management.
Peer comparison
Dec 31, 2023