Dycom Industries Inc (DY)
Inventory turnover
| Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,851,901 | 3,712,282 | 3,629,515 | 3,603,795 | 3,557,217 | 3,513,692 | 3,393,479 | 3,284,455 | 3,127,724 | 2,973,305 | 2,774,306 | 2,763,148 | 2,712,267 | 2,721,980 | 2,906,526 | 2,894,253 | 2,243,445 | 1,583,352 | 850,917 | 329,762 |
| Inventory | US$ in thousands | 101,248 | 103,952 | 108,565 | 114,016 | 117,225 | 115,748 | 114,972 | 107,135 | 98,883 | 94,067 | 81,291 | 69,876 | 69,685 | 71,059 | 70,849 | 70,827 | 77,754 | 92,622 | 98,324 | 104,923 |
| Inventory turnover | 38.04 | 35.71 | 33.43 | 31.61 | 30.35 | 30.36 | 29.52 | 30.66 | 31.63 | 31.61 | 34.13 | 39.54 | 38.92 | 38.31 | 41.02 | 40.86 | 28.85 | 17.09 | 8.65 | 3.14 |
July 27, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,851,901K ÷ $101,248K
= 38.04
The inventory turnover for Dycom Industries Inc has displayed a fluctuating trend over the past few quarters, ranging from a low of 3.14 in October 2019 to a high of 41.02 in January 2021. The increasing trend from 8.65 in January 2020 to 41.02 in January 2021 indicates a significant improvement in the efficiency of the company in managing its inventory during this period.
The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period, reflecting how efficiently the company is managing its inventory levels. A higher turnover ratio suggests that the company is selling its inventory quickly and efficiently, which can lead to lower holding costs and potentially higher profitability.
It is important for Dycom Industries Inc to closely monitor its inventory turnover ratio to ensure optimal inventory management, balancing the trade-off between stockouts and excess inventory. The recent decline in the ratio from 41.02 in January 2021 to 38.04 in July 2024 may indicate potential challenges in managing inventory levels efficiently, warranting a closer look at inventory management practices to maintain operational effectiveness.
Peer comparison
Jul 27, 2024
Jul 27, 2024