Telephone and Data Systems Inc (TDS)

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	32.31	36.64	43.01	53.74	54.40	51.85	44.66	38.89	38.11	29.87	40.08	31.08	32.57	34.68	31.68	44.85	35.05	30.42	32.21	26.11
Days of sales outstanding (DSO)	days	70.17	69.28	69.72	73.87	75.86	75.85	75.60	75.59	84.93	80.62	79.45	80.45	83.08	82.59	78.62	75.48	73.28	69.88	69.78	69.15
Number of days of payables	days	55.91	111.34	72.48	68.72	102.72	104.11	92.87	82.00	102.97	98.03	79.32	77.16	107.43	84.38	72.75	77.77	77.56	79.87	76.77	63.29
Cash conversion cycle	days	46.56	-5.42	40.25	58.88	27.54	23.59	27.38	32.48	20.07	12.46	40.22	34.37	8.21	32.89	37.56	42.56	30.77	20.43	25.23	31.97

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.31 + 70.17 – 55.91
= 46.56

The cash conversion cycle for Telephone And Data Systems, Inc. has shown fluctuations over the past eight quarters. In Q1 2023 and Q2 2023, the company experienced longer cash conversion cycles of 69.87 days and 54.91 days respectively, indicating that it took longer for the company to convert its investments in inventory and other resources into cash from sales. On the other hand, in Q3 2023, the company managed to significantly reduce its cash conversion cycle to 19.64 days, indicating an improvement in efficiency.

Overall, the company's cash conversion cycle has been volatile, with fluctuations seen from quarter to quarter. It is essential for Telephone And Data Systems, Inc. to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and liquidity.