AT&T Inc (T)

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 9.47 13.76 10.62 12.58 13.62 21.59 17.04 15.79 17.15 13.01 11.72 13.54 14.58 62.05 64.20 60.01 12.77 58.99 52.47 52.01
Days of sales outstanding (DSO) days 30.68 26.87 27.96 30.77 34.66 34.48 34.10 49.15 47.85 49.62 43.96 45.50 51.58 40.91 39.86 40.56 45.60 45.88 44.51 49.06
Number of days of payables days 118.85 135.60 146.11 129.22 132.18
Cash conversion cycle days -78.70 40.62 38.58 43.34 -87.32 56.07 51.14 64.93 -81.12 62.64 55.69 59.04 -63.06 102.96 104.06 100.58 -73.81 104.87 96.99 101.07

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.47 + 30.68 – 118.85
= -78.70

The cash conversion cycle for AT&T, Inc. fluctuated significantly over the past eight quarters. In Q4 2023 and Q4 2022, the company had negative cash conversion cycles, indicating that it was able to convert its invested resources back into cash quickly. This may suggest efficient management of working capital during those quarters.

However, in Q1-Q3 2023 and Q1-Q3 2022, the cash conversion cycle was positive, with an average of around 51.26 days. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash. A longer cash conversion cycle may indicate inefficiencies in managing working capital or potential issues with inventory turnover or accounts receivable collection.

Overall, AT&T, Inc. should aim to minimize its cash conversion cycle to improve its liquidity position and optimize its working capital management. Monitoring and analyzing the components of the cash conversion cycle, such as inventory turnover and accounts receivable collection efficiency, can help the company identify areas for improvement and enhance its cash flow performance.


Peer comparison

Dec 31, 2023


See also:

AT&T Inc Cash Conversion Cycle (Quarterly Data)