Dycom Industries Inc (DY)
Cash conversion cycle
| Oct 26, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.58 | 9.59 | 10.22 | 10.92 | 11.55 | 12.03 | 12.02 | 12.37 | 11.91 | 11.54 | 11.55 | 10.70 | 9.23 | 9.38 | 9.53 | 8.90 | 8.93 | 12.65 | 21.35 | 42.18 |
| Days of sales outstanding (DSO) | days | 133.30 | 124.99 | 117.66 | 109.32 | 129.54 | 110.96 | 109.33 | 103.05 | 124.89 | 119.18 | 113.10 | 106.61 | 113.79 | 112.06 | — | 98.20 | 107.76 | 101.07 | 96.19 | 90.31 |
| Number of days of payables | days | 21.99 | 22.13 | 20.93 | 22.34 | 21.80 | 21.01 | 20.38 | 22.34 | 22.33 | 21.89 | 21.66 | 20.51 | 22.93 | 23.31 | 22.93 | 19.96 | 23.16 | 28.84 | 44.82 | 51.31 |
| Cash conversion cycle | days | 121.89 | 112.45 | 106.95 | 97.90 | 119.28 | 101.98 | 100.98 | 93.07 | 114.46 | 108.83 | 102.98 | 96.80 | 100.09 | 98.12 | -13.40 | 87.13 | 93.53 | 84.88 | 72.73 | 81.18 |
October 26, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.58 + 133.30 – 21.99
= 121.89
The cash conversion cycle of Dycom Industries Inc has shown some variability over the past years, ranging from negative values to around 121 days. In general, the cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates efficient management of working capital.
From the data provided, it can be observed that the cash conversion cycle has fluctuated throughout the periods analyzed. The company's ability to manage its inventory, collect receivables, and pay its payables has varied over time. For example, the longest cash conversion cycle was around 121.89 days, indicating a longer period for cash to return to the company.
On the other hand, the negative cash conversion cycle observed in one period (-13.40 days) suggests that the company was able to convert its investments into cash before having to pay its suppliers, potentially indicating a strong position in managing its working capital efficiently.
Overall, a consistent and optimized cash conversion cycle is essential for the financial health of a company, as it affects liquidity and cash flow management. Dycom Industries Inc may benefit from further analysis to identify factors driving these fluctuations and implement strategies to improve the efficiency of its cash conversion cycle.
Peer comparison
Oct 26, 2024