Dycom Industries Inc (DY)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Oct 26, 2024 | Jul 31, 2024 | Jul 27, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.55 | 10.10 | 10.19 | 9.13 | 9.52 | 10.49 | 10.73 | 11.34 | 11.36 | 11.51 | 11.62 | 12.08 | 12.31 | 12.71 | 12.72 | 12.66 | 12.40 | 11.19 | 11.54 | 11.60 |
| Days of sales outstanding (DSO) | days | — | — | 126.34 | — | 124.65 | — | 119.88 | — | 106.78 | — | 125.65 | — | 110.73 | — | 110.55 | — | 98.48 | — | 117.93 | — |
| Number of days of payables | days | — | — | 21.18 | — | 21.95 | — | 21.97 | — | 23.24 | — | 21.93 | — | 21.50 | — | 21.56 | — | 22.41 | — | 21.65 | — |
| Cash conversion cycle | days | 11.55 | 10.10 | 115.35 | 9.13 | 112.22 | 10.49 | 108.64 | 11.34 | 94.90 | 11.51 | 115.34 | 12.08 | 101.54 | 12.71 | 101.71 | 12.66 | 88.48 | 11.19 | 107.82 | 11.60 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.55 + — – —
= 11.55
The cash conversion cycle of Dycom Industries Inc has shown varying trends over the reporting periods. The cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle is generally considered favorable as it indicates that the company is efficiently managing its working capital.
From July 31, 2022, to October 29, 2022, Dycom Industries experienced a significant increase in its cash conversion cycle, reaching 107.82 days. This sudden increase could suggest potential issues with managing inventory, collecting receivables, or paying suppliers during this period.
Subsequently, the company managed to reduce its cash conversion cycle to 11.19 days by October 31, 2022, showing improved efficiency in working capital management. However, the cycle increased again by January 28, 2023, and continued to fluctuate over the following quarters.
Overall, Dycom Industries' cash conversion cycle exhibited fluctuations throughout the analyzed periods, indicating potential challenges or improvements in managing inventory, accounts receivable, and accounts payable. Further monitoring and analysis of the company's working capital management practices are recommended to ensure optimal operational efficiency.
Peer comparison
Jan 31, 2025