AT&T Inc (T)
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 | 14.86 | 14.05 | 14.10 | 16.46 | 14.55 |
| Days of sales outstanding (DSO) | days | 28.76 | 30.68 | 34.66 | 47.85 | 51.58 |
| Number of days of payables | days | 179.63 | 176.29 | 140.47 | 146.11 | 128.99 |
| Cash conversion cycle | days | -136.01 | -131.56 | -91.70 | -81.80 | -62.86 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.86 + 28.76 – 179.63
= -136.01
The cash conversion cycle for AT&T Inc has shown a downward trend over the years, indicating an improvement in the efficiency of its working capital management. The company's cash conversion cycle decreased from -62.86 days at the end of 2020 to -136.01 days by the end of 2024.
A negative cash conversion cycle implies that AT&T Inc is able to convert its investments in inventory and receivables into cash quickly, indicating strong financial health and efficiency in its operations. This trend suggests that the company has been able to streamline its processes, manage inventories effectively, and collect receivables promptly.
AT&T Inc's ability to manage its cash conversion cycle efficiently can result in lower working capital needs, reduced financing costs, and improved overall profitability. This downward trend in the cash conversion cycle reflects positively on the company's financial management practices and operational effectiveness.
Peer comparison
Dec 31, 2024