Shenandoah Telecommunications Co (SHEN)

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	12.88	—	51.77	57.56	39.05	66.50	105.04	58.41	—	26.50	2,303.73	2,461.52	2,440.76	9,431.29	18.31	25.96	15.67	6.09	8.66	8.07
Days of sales outstanding (DSO)	days	29.73	28.49	24.51	26.16	64.33	70.73	64.83	64.48	76.28	37.24	99.88	70.55	59.52	46.27	56.20	41.76	44.10	37.63	37.88	27.87
Number of days of payables	days	70.13	74.78	72.14	83.07	84.89	78.80	67.72	52.82	73.38	35.28	48.75	43.34	45.01	208.64	148.38	111.56	110.23	35.37	36.47	28.32
Cash conversion cycle	days	-27.52	-46.29	4.15	0.65	18.50	58.44	102.14	70.07	2.90	28.45	2,354.86	2,488.73	2,455.27	9,268.92	-73.86	-43.84	-50.46	8.36	10.07	7.61

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.88 + 29.73 – 70.13
= -27.52

The cash conversion cycle for Shenandoah Telecommunications Co. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -153.12 days, indicating that it has a negative cash conversion cycle, meaning it takes less time for the company to convert its investments in inventory and other resources into cash inflows from sales.

The trend shows that the cash conversion cycle has been negative (indicating efficiency) for the past few quarters, with the lowest point observed in Q2 2022 at -34.53 days. This suggests that Shenandoah Telecommunications Co. has been able to manage its working capital efficiently, resulting in quicker cash inflows relative to its cash outflows.

However, it's important to note that the negative cash conversion cycle may indicate aggressive sales strategies, stretched payables, or efficient inventory management. The company should continue to monitor and manage its working capital effectively to ensure sustainable operations and liquidity in the long run.