Dycom Industries Inc (DY)

Short-term

Turnover ratios

Dycom Industries Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: Dycom has shown a consistent and high inventory turnover rate over the periods, indicating efficient management of inventory levels. The company is able to quickly convert its inventory into sales, with a peak turnover of 41.02 in Jan 2021, although there was a slight decline in recent periods.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently Dycom collects payments from its customers. The company has maintained a relatively stable turnover rate, with a peak of 4.04 in Jan 2020. This indicates that Dycom efficiently collects payments from customers, although there was a slight decline in the recent periods.

3. Payables Turnover: Dycom's payables turnover ratio reflects how quickly the company pays off its suppliers. The company has consistently maintained a moderate turnover rate over the periods, with the highest being 18.28 in Jan 2020. A higher turnover indicates that Dycom efficiently manages its payables.

4. Working Capital Turnover: This ratio measures how efficiently Dycom utilizes its working capital to generate revenue. The company has shown a fluctuating turnover rate, with a peak of 4.44 in Jan 2021. A higher turnover ratio suggests effective utilization of working capital to generate sales.

Overall, Dycom Industries Inc demonstrates good efficiency in managing its inventory, receivables, payables, and working capital, as evidenced by the activity ratios analysis.

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Average number of days

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. A lower DOH indicates efficient inventory management. Dycom Industries Inc's DOH has ranged from 8.90 to 12.65 days over the past few quarters, showing some fluctuation but generally staying within a reasonable range.

Days of sales outstanding (DSO) reflects how long it takes for a company to collect payments from credit sales. A lower DSO indicates efficient credit management. Dycom's DSO has varied between 98.20 and 133.30 days, with some fluctuations but generally showing a moderate collection period.

The number of days of payables metric indicates how long a company takes to pay its suppliers. A longer payable period can imply better cash flow management. Dycom's payable days have been in the range of 19.96 to 51.31 days, showing variability but generally maintaining within reasonable limits.

In summary, Dycom Industries Inc has been managing its inventory, receivables, and payables efficiently, with fluctuations in these activity ratios but overall staying within acceptable ranges. The company may benefit from further monitoring and potential adjustments to optimize its working capital management.

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Long-term

Dycom Industries Inc's fixed asset turnover ratio has been consistently high, indicating the company efficiently generates revenue from its fixed assets. The ratio has ranged from 8.81 to 11.09 over the past three years, which demonstrates the effectiveness of the company in utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio, which measures the efficiency of the company in generating sales from all assets, has shown some fluctuations. The ratio has ranged from 1.37 to 1.71 over the same period. This indicates that, while the company has been effective in generating revenue from its fixed assets, the efficiency of utilizing all assets to generate sales has varied.

Overall, a high fixed asset turnover ratio coupled with a fluctuating total asset turnover ratio suggests that Dycom Industries Inc may have room for improvement in optimizing the utilization of all its assets to drive sales growth and profitability.