Tegna Inc (TGNA)

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	—	—	—	—	—	6.77	6.37	5.35	3.50	3.93	3.67	4.15	3.67	4.07	3.83	4.12	6.08	6.19	4.40	4.55
Days of sales outstanding (DSO)	days	84.48	76.70	73.02	77.03	78.97	73.84	78.19	83.79	85.58	75.86	74.43	80.60	72.68	76.65	78.42	89.00	103.57	97.16	83.84	84.66
Number of days of payables	days	19.18	14.28	13.14	14.79	12.83	14.30	14.92	15.21	12.94	8.28	6.77	8.00	10.92	11.78	7.43	11.50	11.72	15.31	14.67	13.55
Cash conversion cycle	days	65.30	62.42	59.88	62.24	66.13	66.31	69.64	73.93	76.14	71.51	71.33	76.75	65.43	68.94	74.82	81.62	97.92	88.04	73.58	75.65

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 shown varying trends over the past eight quarters. The cycle represents the time required to convert raw materials into cash inflows from sales, highlighting the efficiency of the company's working capital management.

In Q4 2023, the cash conversion cycle increased slightly to 55.06 days compared to the previous quarter, indicating a potential slowdown in the conversion of inventory into cash. Despite this increase, the cycle remained relatively stable around the 55-day mark, suggesting consistent performance in managing receivables and payables.

Looking back, Q2 2022 and Q3 2022 recorded the lowest cycles at 52.33 days and 51.35 days, respectively, indicating efficient working capital management during those periods. Conversely, Q1 2022 and Q4 2022 witnessed longer cycles, reaching 59.09 days and 58.35 days, respectively, suggesting potential challenges in converting inventory into cash.

Overall, TEGNA Inc's cash conversion cycle has displayed some fluctuations but generally stayed within a manageable range of around 50 to 60 days over the analyzed quarters. Further examination of the underlying components of the cycle, such as inventory management, accounts receivable collection, and accounts payable turnover, could provide insights into the company's operational efficiency and liquidity management.