Dycom Industries Inc (DY)

Short-term

Turnover ratios

Based on the provided data for Dycom Industries Inc, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Dycom's inventory turnover has been relatively stable and increasing over time, indicating that the company is efficiently selling its inventory. The latest ratio for January 31, 2025, is 31.61.

2. Receivables Turnover:
- The receivables turnover ratio indicates how quickly a company collects its accounts receivable. Dycom's receivables turnover fluctuates, and some periods have missing data. The turnover improved from 3.09 on October 29, 2022, to 3.42 on January 27, 2024.

3. Payables Turnover:
- Payables turnover measures how quickly a company pays its suppliers. Dycom's payables turnover also varies, with some periods having missing data. The turnover has remained relatively stable over the analyzed periods.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company utilizes its working capital to generate sales. Dycom's working capital turnover has shown fluctuations, with periods of increase and decrease. The ratio reached a peak of 4.12 on January 31, 2025.

In conclusion, Dycom Industries Inc has been managing its inventory efficiently, collecting receivables at a reasonable pace, and effectively utilizing working capital. The stability in payables turnover indicates consistent payment practices. Overall, these activity ratios suggest that Dycom is effectively managing its operational activities to support its business operations.

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Average number of days

Based on the activity ratios provided for Dycom Industries Inc, let's analyze each ratio:

1. Days of Inventory on Hand (DOH):
- The DOH for Dycom Industries Inc has been relatively stable over the periods analyzed, ranging from 9.13 days to 12.72 days.
- A decreasing trend in DOH, such as the drop from 12.72 days in April 30, 2023, to 9.13 days in July 31, 2024, indicates that the company is managing its inventory efficiently and could potentially be generating more sales using less inventory.

2. Days of Sales Outstanding (DSO):
- The DSO for Dycom Industries Inc fluctuates significantly over the periods, ranging from 98.48 days to 126.34 days.
- A higher DSO implies that the company is taking longer to collect its accounts receivable, possibly indicating credit management issues or a need to improve collection processes.

3. Number of Days of Payables:
- The number of days of payables for Dycom Industries Inc remains relatively stable, varying between 21.18 days and 23.24 days.
- Consistent payables' days indicate that the company is maintaining a balanced approach to managing its vendor payments.

In summary, Dycom Industries Inc should focus on optimizing its inventory levels to improve efficiency, reducing its DSO to enhance cash flow, and maintaining a stable payables period to support its working capital management.

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Long-term

Based on the provided data, we can analyze Dycom Industries Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios.

1. Fixed Asset Turnover:
The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Dycom Industries Inc's Fixed Asset Turnover ratio fluctuated over the reporting periods, ranging from a high of 11.43 to a low of 8.60. This indicates that, on average, the company has been able to generate revenue 8.60 to 11.43 times from its fixed assets. A higher ratio signifies better utilization of fixed assets to generate sales.

2. Total Asset Turnover:
The Total Asset Turnover ratio reflects how well a company is utilizing all its assets to generate revenue. Dycom Industries Inc's Total Asset Turnover ratio ranged from 1.50 to 1.74 during the periods examined. This indicates that, on average, the company generated revenue 1.50 to 1.74 times for every dollar of assets it held. A higher ratio typically indicates effective asset utilization.

Overall, Dycom Industries Inc's long-term activity ratios suggest a relatively efficient use of both fixed assets and total assets to generate revenue. However, fluctuations in these ratios over time may warrant further analysis to understand the factors impacting the company's asset utilization efficiency.