AT&T Inc (T)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	14.86	9.50	7.93	9.26	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	—
Days of sales outstanding (DSO)	days	28.76	27.12	28.93	28.58	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
Number of days of payables	days	179.63	—	—	—	118.85	—	—	—	135.60	—	—	—	146.11	—	—	—	129.22	—	—	—
Cash conversion cycle	days	-136.01	36.62	36.86	37.84	-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	40.56

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 is an important metric that measures the efficiency of a company in managing its working capital. It represents the time it takes for a company to convert its raw materials into cash from sales. AT&T Inc's cash conversion cycle has fluctuated over the reported periods.

From March 31, 2020, to June 30, 2020, the cash conversion cycle increased significantly from 40.56 days to 104.06 days, indicating a longer cash conversion period. This trend continued until December 31, 2020, when the cycle became negative at -63.06 days. A negative cash conversion cycle may suggest that AT&T Inc was able to collect cash from customers before paying its suppliers and vendors, a favorable scenario indicating strong liquidity management.

Subsequently, the cash conversion cycle fluctuated over the next few quarters but remained negative until December 31, 2021, when it reached -81.12 days, reflecting efficient working capital management. However, by March 31, 2022, the cycle turned positive again, indicating a longer cash conversion period.

Overall, AT&T Inc's cash conversion cycle has shown variability, with both positive and negative values, suggesting fluctuations in working capital efficiency and liquidity management practices. It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital utilization and financial performance.