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 | ||
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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