Warner Bros Discovery Inc (WBD)

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	—	—	—	—	—	3.97	5.29	40.17	0.10	33.97	25.60	29.76	44.08	34.62	20.86	23.82	20.72	35.54	41.58	27.91
Days of sales outstanding (DSO)	days	56.75	53.50	57.59	58.85	66.85	91.54	129.17	67.32	69.82	73.70	83.58	81.54	84.38	83.69	83.76	84.16	86.24	88.79	94.76	87.48
Number of days of payables	days	10.71	7.91	10.81	7.83	12.56	40.92	53.19	47.35	40.11	—	—	—	18.04	18.55	17.09	19.29	21.18	37.20	31.65	30.12
Cash conversion cycle	days	46.04	45.59	46.78	51.02	54.29	54.60	81.27	60.14	29.81	107.67	109.17	111.30	110.42	99.76	87.54	88.70	85.78	87.12	104.69	85.27

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 56.75 – 10.71
= 46.04

Warner Bros. Discovery Inc's cash conversion cycle has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively short cash conversion cycle of 31.60 days, indicating that it took about a month to convert its investments in inventory and other resources into cash inflows from sales. The cycle then increased significantly in Q2 2022 to 84.39 days, suggesting a prolonged period for the company to recoup its investments.

Subsequently, Warner Bros. Discovery Inc managed to reduce its cash conversion cycle in the following quarters, achieving a low of 35.19 days in Q2 2023. This improvement could signal enhancements in inventory management, accounts receivable collection, and payment practices.

However, the company experienced a slight increase in its cash conversion cycle in Q4 2023, reaching 45.84 days. This elevation may indicate potential delays in converting investments into cash inflows, which could impact the company's liquidity and working capital management.

Overall, Warner Bros. Discovery Inc has shown some variability in its cash conversion cycle performance over the past quarters, and it may benefit from continued efforts to optimize its working capital efficiency and operational processes to maintain a healthy cash conversion cycle.