Tegna Inc (TGNA)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	—	3.50	3.67	6.08
Days of sales outstanding (DSO)	days	84.48	78.97	85.58	75.58	103.57
Number of days of payables	days	19.18	12.83	12.94	10.92	11.73
Cash conversion cycle	days	65.30	66.13	76.14	68.33	97.92

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 84.48 – 19.18
= 65.30

The cash conversion cycle of TEGNA Inc has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 55.06 days from 58.35 days in 2022, indicating an improvement in managing cash flows. This trend aligns with the goal of efficiently converting resources into cash within a shorter timeframe.

Comparing 2023 to 2021 and 2020, the cash conversion cycle has decreased, reflecting enhanced efficiency in the company's operations. In 2021, TEGNA Inc had a cash conversion cycle of 63.60 days, which dropped to 56.08 days in 2020. This reduction suggests that the company has been more effective in managing its working capital and converting it into cash during these years.

However, it is worth noting that in 2019, TEGNA Inc experienced a longer cash conversion cycle of 80.04 days. This may have been due to various factors such as extended payment terms, slow collection of receivables, or high inventory turnover. Nonetheless, the subsequent improvement in the cash conversion cycle in recent years indicates progress in streamlining operations and optimizing cash flow management.

Overall, TEGNA Inc's consistent focus on reducing its cash conversion cycle demonstrates a commitment to enhancing operational efficiency and working capital effectiveness, which can positively impact the company's financial health and sustainability.