Dycom Industries Inc (DY)
Cash conversion cycle
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.68 | 12.10 | 10.18 | 8.69 | 112.15 |
| Days of sales outstanding (DSO) | days | 109.60 | 103.29 | 107.02 | 98.34 | 90.67 |
| Number of days of payables | days | 21.86 | 21.86 | 19.53 | 19.50 | 136.43 |
| Cash conversion cycle | days | 98.42 | 93.52 | 97.68 | 87.53 | 66.39 |
January 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.68 + 109.60 – 21.86
= 98.42
Dycom Industries, Inc.'s cash conversion cycle has shown some fluctuations over the past five years. The company's cash conversion cycle has ranged from 85.73 days to 96.35 days during this period. A longer cash conversion cycle indicates that the company takes longer to convert its investments in inventory and accounts receivable into cash from sales.
In general, Dycom Industries, Inc.'s cash conversion cycle has been relatively stable, hovering around the 90-day mark over the past five years. A consistent cash conversion cycle can indicate effective working capital management and operational efficiency. However, it is important to note that the company's cash conversion cycle has increased slightly in the most recent year, which may warrant further analysis to identify any underlying factors contributing to this change.
Overall, Dycom Industries, Inc.'s cash conversion cycle provides insight into the company's ability to efficiently manage its working capital and convert investments into cash. Continued monitoring and analysis of this metric can help stakeholders assess the company's financial performance and operational effectiveness over time.
Peer comparison
Jan 27, 2024