Comcast Corp. (NASDAQ:CMCSA)

Receivables turnover

The receivables turnover ratio generally exhibits moderate fluctuation over the years observed, starting at 9.03 in 2020 and peaking at 9.69 in 2021 before slightly declining to 9.06 by 2024. This pattern suggests relatively stable efficiency in collecting receivables, with a minor dip in 2023 followed by a recovery in 2024.

Payables turnover

Payables turnover shows a gradual upward trend overall, increasing from 2.91 in 2020 to 3.27 in 2024. Although there are slight declines in 2022 and 2023, the ratio's general rise indicates an improvement in the rate at which the company pays its suppliers over the period.

Average receivable collection period

The average collection period for receivables remained fairly consistent, ranging narrowly between 38 and 41 days. It began at 40 days in 2020, decreased to 38 days in 2021 and 2022, then increased slightly to 41 days in 2023, before returning to 40 days in 2024. This stability aligns with the relatively steady receivables turnover ratios observed.

Average payables payment period

The average payment period for payables demonstrates a declining trend, decreasing from 125 days in 2020 to 112 days in 2024. The period dropped fairly steadily with some minor fluctuations, indicating the company is shortening the time taken to pay its suppliers, which corresponds with the increasing payables turnover ratio during the same period.

Working capital turnover

Data is not available for the working capital turnover ratio, preventing any analysis or trend observation for this financial metric across the reported periods.

Revenue

The revenue demonstrates a consistent upward trend from 2020 to 2024, increasing from $103,564 million to $123,731 million. The growth rate, however, shows some deceleration in the later years, with a notable plateau between 2022 ($121,427 million) and 2023 ($121,572 million), followed by a modest increase in 2024. This suggests a slowing yet positive expansion of the company’s sales or service income over the analyzed period.

Receivables, net

The net receivables increase steadily over the period, rising from $11,466 million in 2020 to $13,661 million in 2024. This upward movement indicates an increasing amount of outstanding customer balances, which could be attributable to higher sales volume or changes in credit terms. There is a consistent rise each year except for a slight decline between 2023 ($13,813 million) and 2024.

Receivables turnover

The receivables turnover ratio improved from 9.03 in 2020 to a peak of 9.69 in 2021, indicating enhanced efficiency in collecting receivables during that period. Following this peak, the ratio gradually decreased to 8.8 in 2023 before rebounding to 9.06 in 2024. The fluctuation suggests some variability in the effectiveness of credit management and collection efforts, reflecting possible changes in customer payment behavior or internal credit policies.

Overall Analysis

The company exhibits steady revenue growth accompanied by increasing receivables, signaling expanding business operations along with a higher amount tied up in accounts receivable. Receivables turnover experienced variability but generally remained close to prior levels, implying a fairly stable collection efficiency despite the growth in receivables. The slight decrease in turnover during 2022-2023, coupled with a rise in receivables, may warrant attention to ensure continued effective credit management as the company scales.

Programming and Production Expenses

The expenses for programming and production demonstrated an overall upward trend from 2020 to 2024, increasing from 33,121 million USD in 2020 to 37,026 million USD in 2024. There was a peak in 2021 at 38,450 million USD, followed by a slight decline in 2022 and 2023. Despite these fluctuations, the expense level in 2024 remained higher than in 2020, indicating a general increase over the five-year period.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses related to trade creditors saw a gradual increase from 11,364 million USD in 2020 to a high of 12,544 million USD in 2022. After this peak, these liabilities showed a declining trend in the following years, reaching 11,321 million USD by the end of 2024. This suggests improved management of trade payables or possible changes in procurement or payment policies after 2022.

Payables Turnover Ratio

The payables turnover ratio experienced minor fluctuations but generally remained within a narrow range across the period. Starting at 2.91 in 2020, it increased to 3.09 in 2021, slightly dipped in 2022 to 3.05, declined further to 2.96 in 2023, and then rose sharply to 3.27 in 2024. The rise in 2024 may indicate faster payment cycles or improved operational efficiency in managing payables at the end of the period.

Overall Insights

The data suggests that while programming and production costs increased over time, the company showed an ability to manage its trade payables more effectively, especially after 2022. The fluctuating but generally steady payables turnover ratio supports the notion of consistent payment practices, with a notable improvement in 2024 potentially reflecting a strategic shift in working capital management. The downward trend in accounts payable from its 2022 peak could imply better negotiation or faster payment to suppliers to maintain favorable trade relationships.

Working Capital

There is a consistent decrease in working capital over the five-year period. Starting at negative 2,055 million US dollars in 2020, the negative balance grows significantly each year, reaching negative 16,211 million US dollars in 2023. Although there is a slight improvement in 2024 to negative 12,780 million US dollars, the overall trend indicates increasing working capital deficits.

Revenue

Revenue shows a positive growth trend throughout the period. Beginning at 103,564 million US dollars in 2020, revenues increase steadily year over year. By 2021, revenue grows to 116,385 million US dollars, continuing upward to 123,731 million US dollars by 2024. The growth rate, however, shows signs of slowing, with minimal increase between 2022 and 2023.

Working Capital Turnover

The working capital turnover ratio is not provided in the data and thus cannot be assessed. Given the negative working capital values, calculation of this ratio might be challenging or non-standard.

Overall Analysis

The data reveals a notable divergence between working capital and revenue trends. While revenue consistently increases, the working capital position deteriorates significantly, indicating potential liquidity issues or increased short-term liabilities relative to current assets. The slight recovery in working capital in 2024 may suggest efforts to address this deficit. The increasing negative working capital amidst growing revenues could imply greater use of supplier credit or changes in current asset management.

The analysis of the annual financial data reveals specific trends in the company's receivables management over the five-year period.

Receivables Turnover

The receivables turnover ratio generally exhibits a slight fluctuation over the period. Starting at 9.03 in 2020, it increased to a peak of 9.69 in 2021, indicating improved efficiency in collecting receivables during that year. However, the ratio declined marginally to 9.58 in 2022 and further to 8.8 in 2023, demonstrating a temporary reduction in collection efficiency. By 2024, the ratio recovered somewhat to 9.06, suggesting a partial return to earlier levels of turnover.

Average Receivable Collection Period

This metric shows an inverse relationship relative to the turnover ratio, as expected. The average collection period decreased from 40 days in 2020 to 38 days in 2021 and remained stable at 38 days in 2022, reflecting quicker collections. However, it then increased to 41 days in 2023, indicating slower collection during that year, before returning to 40 days in 2024, aligning closely with the initial figure from 2020.

Overall, the data suggest that receivables management was most efficient around 2021 and 2022, with faster turnover and shorter collection periods. The subsequent decline in turnover and longer collection periods in 2023 could indicate some operational challenges or changes in credit policy during that year. The partial recovery in 2024 points toward stabilization in managing receivables, although not surpassing the peak efficiency observed in 2021.

Payables Turnover Trend

The payables turnover ratio exhibits a generally stable pattern with minor fluctuations over the analyzed periods. There is an initial increase from 2.91 in 2020 to 3.09 in 2021, indicating a slight improvement in how quickly the company settles its payables. However, this is followed by a marginal decline to 3.05 in 2022 and 2.96 in 2023. The ratio rises again to 3.27 in 2024, reaching the highest level within the period reviewed. Overall, the changes suggest periodic adjustments in payment management without extreme volatility.

Average Payables Payment Period Analysis

The average payables payment period, expressed in number of days, shows a decreasing trend over the five years under review. Beginning at 125 days in 2020, it shortens to 118 days in 2021 and slightly increases to 120 days in 2022. There is a moderate extension to 123 days in 2023 but followed by a significant reduction to 112 days in 2024, the lowest point recorded in the dataset. This indicates a tendency towards faster payments to suppliers as time progresses, contributing to improved cash flow management.

Correlation and Interpretation

The inverse relationship between payables turnover and average payment period is evident, as increases in payables turnover correspond with decreases in the payment period. This pattern signifies more efficient management of accounts payable over the years, with the company aiming to optimize its payment schedules. The peak in payables turnover in 2024 alongside the shortest payment period reinforces the conclusion of enhanced payment efficiency during the latest period.