AT&T Inc (T)
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 | 14.05 | 14.10 | 17.15 | 14.55 | 12.75 |
| Days of sales outstanding (DSO) | days | 30.68 | 34.66 | 47.85 | 51.58 | 45.60 |
| Number of days of payables | days | 176.29 | 140.47 | 146.11 | 128.99 | 131.96 |
| Cash conversion cycle | days | -131.56 | -91.70 | -81.12 | -62.86 | -73.61 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.05 + 30.68 – 176.29
= -131.56
The cash conversion cycle for AT&T, Inc. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle improved significantly to -152.34 days compared to -166.17 days in 2022. This suggests that the company managed its working capital more efficiently in 2023.
However, looking back at 2021 and 2020, the cash conversion cycle was more negative (-86.84 days and -102.44 days, respectively), indicating that AT&T was able to convert its investments in inventory and accounts receivable into cash quickly during those years.
In contrast, in 2019, the cash conversion cycle was more favorable at -82.98 days, signaling that AT&T operated with even more efficiency in managing its working capital during that year.
Overall, the trend in the cash conversion cycle for AT&T shows some variability, with improvements in certain years and slight deteriorations in others. This metric is crucial for assessing how effectively the company manages its cash flows, inventory, and receivables to support its operations and financial health.
Peer comparison
Dec 31, 2023