Warner Bros Discovery Inc (WBD)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	3.74	4.85	33.01	52.77	64.24	51.29	61.50	91.72	72.85	44.45	49.86
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	3.74	4.85	33.01	52.77	64.24	51.29	61.50	91.72	72.85	44.45	49.86

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00

The cash conversion cycle of Warner Bros Discovery Inc has shown varying trends over the years. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and other resources into cash flows.

Analyzing the data provided, the company's cash conversion cycle was relatively stable around 50-70 days in 2020 and early 2021, indicating that Warner Bros Discovery Inc took approximately 50-70 days to convert its investments into cash during that period.

However, there was a significant improvement in the company's cash conversion cycle towards the middle of 2022, with the cycle dropping to single-digit days. This suggests that the company was able to more efficiently convert its investments into cash during this time, potentially through better inventory management or faster receipt of payments.

Towards the end of 2022 and going into 2023 and beyond, the cash conversion cycle reached 0 days, indicating that Warner Bros Discovery Inc was able to convert its investments into cash almost immediately. This could imply a highly efficient cash management and liquidity position, possibly due to improved operational processes or stronger working capital management.

Overall, the decreasing trend in the cash conversion cycle over the years indicates improved efficiency in managing working capital and converting investments into cash, which can positively impact the company's cash flows and financial performance.