Dycom Industries Inc (DY)

Based on the provided data, Dycom Industries Inc's liquidity ratios have shown some fluctuations over the years.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Dycom Industries Inc maintained a relatively stable current ratio around 3.00 from January 2023 to January 2024, indicating a healthy liquidity position. However, there was a slight decline to 2.89 by January 31, 2025, which may suggest a slight decrease in the company's ability to meet its short-term obligations using current assets.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Dycom Industries Inc experienced significant fluctuations in its quick ratio over the years, ranging from 0.16 to 2.76. The drastic drop from 2.66 in January 2024 to 0.16 in January 31, 2025, might indicate potential challenges in meeting short-term obligations without relying on inventory.

3. Cash Ratio: The cash ratio specifically assesses the company's ability to cover its short-term liabilities using only cash and cash equivalents. Dycom Industries Inc's cash ratio remained relatively stable around 0.20 from January 2023 to January 2024 before declining to 0.16 by January 31, 2025. This trend suggests a slight decrease in the company's ability to cover its short-term obligations solely with cash reserves.

In conclusion, while Dycom Industries Inc has generally maintained healthy liquidity levels as evidenced by the current ratio above 1.00, the fluctuations in the quick ratio and cash ratio over the years may indicate the need for closer monitoring of its short-term liquidity position to ensure ongoing financial stability.

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Additional liquidity measure

The cash conversion cycle of Dycom Industries Inc has shown fluctuating trends over the years based on the provided data. In January 2023, the cash conversion cycle was relatively high at 93.52 days, indicating that the company took a considerable amount of time to convert its investments in raw materials and inventory into cash inflows from sales.

By January 2024, the cash conversion cycle had increased further to 98.42 days, signaling potential inefficiencies in managing working capital and converting sales into cash. However, in the subsequent period of January 2025, there was a notable improvement as the cash conversion cycle decreased to 12.32 days, suggesting that the company was able to streamline its operations and accelerate the cash conversion process.

Overall, the fluctuations in the cash conversion cycle of Dycom Industries Inc indicate varying levels of efficiency in managing its cash flows, inventory, and accounts receivable during the specified periods. It is important for the company to continuously monitor and optimize its cash conversion cycle to ensure effective utilization of resources and maintain healthy liquidity levels.