CACI International Inc (CACI)

Short-term

Turnover ratios

The activity ratios for CACI International Inc over the period from June 30, 2021, to June 30, 2025, reveal several trends indicative of the company’s operational efficiency and management of working capital assets.

Inventory Turnover:
The inventory turnover ratio shows a downward trend from 69.07 in 2021 to 46.98 in 2023, with a slight decline continuing to 44.66 in 2024 before an increase to 60.90 in 2025. This indicates that initially, the company was managing its inventory quite efficiently, turning over inventory approximately 69 times annually in 2021. The declining ratio up to 2024 suggests a slowdown in inventory liquidation or increased inventory holdings relative to sales. The subsequent increase in 2025 suggests an improvement in inventory management or demand conditions, allowing the company to turnover inventory more frequently again.

Receivables Turnover:
The receivables turnover ratio fluctuated slightly across the period, with ratios of 6.87, 6.70, 7.49, 7.43, and 6.14. The ratio peaked at 7.49 in 2023, indicating more efficient collection of receivables during that period. The slight decline to 6.14 in 2025 suggests a modest decrease in collection efficiency, potentially reflecting changes in credit policies, customer payment behaviors, or broader economic factors impacting accounts receivable.

Payables Turnover:
The payables turnover shows considerable variation, starting at 37.03 in 2021, dropping sharply to 18.81 in 2022, then rising to 30.96 in 2023. The ratio decreased again in 2024 to 18.42 before increasing to 20.61 in 2025. The sharp decline in 2022 could indicate extended credit terms or delayed payments to suppliers, possibly as a strategic management decision or due to liquidity considerations. The subsequent increases reflect a normalization or tightening of payable practices.

Working Capital Turnover:
The ratio demonstrates variability across the years, with a notable increase from 13.54 in 2021 to 34.03 in 2022, then a slight decline to 31.02 in 2023. It further decreases to 25.85 in 2024 and drops significantly to 15.09 in 2025. The rising working capital turnover in 2022 suggests an improved utilization of working capital to generate sales, while the subsequent decrease points to a potential reduction in operational efficiency or increased working capital levels relative to sales.

Summary:
Overall, the activity ratios portray a company experiencing fluctuations in operational efficiency over the analyzed period. The inventory turnover decline indicates potential inventory management challenges or shifts in sales volume, which appear to improve again in 2025. Receivables collection efficiency was relatively stable but showed some erosion in 2025. Payables management has seen periods of extended credit periods followed by normalization, impacting cash flow management. The working capital turnover trend suggests initial improvements in resource utilization, followed by a decline, reflecting changes in operational leverage or investment in working capital assets.

These ratios collectively suggest that CACI's operational efficiency has experienced periods of both improvement and challenge, requiring ongoing monitoring to ensure optimal asset utilization and liquidity management.

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Average number of days

The analysis of CACI International Inc's activity ratios over the period from June 30, 2021, to June 30, 2025, reveals the following trends:

Inventory Turnover (Days of Inventory on Hand):
The company’s inventory holdings, as measured by days of inventory on hand, increased from 5.28 days in mid-2021 to a peak of 8.17 days in mid-2024. This indicates a gradual elongation in the duration inventory remains unsold before being turned over, suggesting a possible slowdown in inventory turnover or an intentional accumulation of inventory. The increase might reflect strategic inventory management adjustments or changes in product demand cycles. However, by mid-2025, the inventory days decrease to 5.99 days, indicating a potential optimization or reduction of inventory levels.

Receivables Collection Period (Days of Sales Outstanding - DSO):
The days sales outstanding exhibit some variability. Initially, there is a slight increase from 53.13 days in 2021 to 54.50 days in 2022, indicating a marginal extension in receivables collection efforts. In 2023, DSO decreases to 48.74 days, suggesting an improvement in receivables management and potentially faster collection processes. However, the DSO rises again in 2024 to 49.14 days and significantly extends to 59.46 days in 2025, which may imply delays in receivables collection, more lenient credit terms, or a shift in client payment behaviors. The considerable increase in 2025 warrants attention, as it could impact cash flow if it persists.

Payables Turnover (Days of Payables):
The days of payables fluctuate throughout the period. There is an increase from 9.86 days in 2021 to 19.41 days in 2022, indicating that the company extended its payment terms with suppliers. In 2023, this duration decreases back to 11.79 days, suggesting a tightening of payment schedules. The payables days rise again in 2024 to 19.81 days and decrease slightly in 2025 to 17.71 days. Overall, the company appears to manage its payables with some flexibility, lengthening payment periods during certain years to optimize working capital and cash flow, followed by periods of contraction.

Summary:
Overall, CACI’s activity ratios reflect a pattern of evolving operational efficiencies. The slight increase in inventory days indicates a cautious approach toward inventory management or a response to shifting demand. The fluctuating DSO suggests periods of both improved and challenged receivables collection, with the notable increase in 2025 potentially impacting liquidity. The payables activity shows strategic management of supplier payments, balancing cash flow considerations with supplier relations. Continuous monitoring of these ratios will be necessary to ensure operational efficiencies are maintained and working capital is optimized.

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Long-term

The analysis of CACI International Inc’s long-term activity ratios over the specified period reveals notable trends indicating enhanced operational efficiency in asset utilization.

Fixed Asset Turnover Ratio:
The fixed asset turnover ratio exhibits a significant increase from 11.04 on June 30, 2021, to 30.17 on June 30, 2022, and further to 33.59 on June 30, 2023. This upward trajectory suggests a substantial improvement in the company's ability to generate revenue through its fixed assets, indicating more efficient use or better deployment of these assets in its operations. The ratios for the following two periods (June 30, 2024, and June 30, 2025) are not provided, which precludes analysis beyond 2023, but the observed trend points to a period of operational optimization during the years prior.

Total Asset Turnover Ratio:
The total asset turnover ratio demonstrates a steady, if less dramatic, upward trend from 0.98 on June 30, 2021, to 0.94 on June 30, 2022, and then to 1.02 on June 30, 2023. The ratio further improves to 1.13 on June 30, 2024, before slightly declining to 1.00 on June 30, 2025. The initial decrease from 2021 to 2022 may reflect a temporary misalignment of asset deployment, but the subsequent increases indicate regained and enhanced efficiency in generating revenue relative to total assets. The ratio approaching and reaching above 1.00 in 2023 and 2024 signifies that the company is generating more revenue per dollar of total assets, which is a positive sign of operational effectiveness.

Overall Implication:
Together, these ratios imply a consistent improvement in CACI International’s utilization of both fixed and total assets over the recent years. The sharp increase in fixed asset turnover suggests more effective use of tangible assets, potentially through optimization of property, plant, and equipment. The rising total asset turnover indicates a broader enhancement in overall asset efficiency, contributing positively to the company's operational performance and profitability potential. However, the lack of data beyond 2023 for fixed assets and the slight decline in total asset turnover in 2025 underscore the importance of ongoing monitoring to confirm whether this trend sustains.

In conclusion, the long-term activity ratios of CACI International Inc reflect a pattern of increasing efficiency in asset utilization from 2021 through 2024, underscoring the company's potential gains in operational leverage and resource management over this period.