Telephone and Data Systems Inc (TDS)
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 | 31.29 | 32.53 | 38.14 | 26.28 | 23.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 31.29 | 32.53 | 38.14 | 26.28 | 23.88 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.29 + — – —
= 31.29
The cash conversion cycle of Telephone and Data Systems Inc has shown fluctuations over the years. As of December 31, 2020, the company had a cash conversion cycle of 23.88 days, which increased to 26.28 days by December 31, 2021. Subsequently, there was a significant jump in the cash conversion cycle to 38.14 days as of December 31, 2022.
However, the company managed to reduce the cash conversion cycle to 32.53 days by December 31, 2023, and further decreased it to 31.29 days by December 31, 2024. This indicates that the company was able to improve its efficiency in managing its working capital and converting its investments in inventory and accounts receivable into cash more quickly in the latter years.
Overall, the trend in the cash conversion cycle reflects fluctuations in the company's operational efficiency and working capital management over the years. It is important for investors and analysts to closely monitor changes in the cash conversion cycle to assess the company's ability to efficiently convert its resources into cash.
Peer comparison
Dec 31, 2024