Dycom Industries Inc (DY)
Cash conversion cycle
| 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 | Oct 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 116.13 |
| Days of sales outstanding (DSO) | days | 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 | 100.91 |
| Number of days of payables | days | 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 | 143.37 |
| Cash conversion cycle | days | 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 | 73.67 |
July 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.59 + 124.99 – 22.13
= 112.45
The cash conversion cycle of Dycom Industries Inc has exhibited fluctuations over the period presented. 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.
Looking at the data provided, we observe that Dycom Industries Inc's cash conversion cycle ranged from -13.40 days to 119.28 days during the analyzed period. A negative cash conversion cycle, as seen in the data corresponding to May 1, 2021, indicates that the company is able to collect cash from customers before paying its suppliers, a favorable scenario that can improve cash flow and liquidity.
On the other hand, a longer cash conversion cycle, as seen on Oct 28, 2023 (119.28 days), indicates that Dycom Industries Inc takes longer to convert its investments in inventory and other resources into cash, which could potentially strain liquidity and operational efficiency.
It is important for Dycom Industries Inc to consistently monitor and manage its cash conversion cycle to ensure efficient management of working capital, timely collection of receivables, and effective inventory management. Fluctuations in the cash conversion cycle can reflect changes in the company's operational efficiency, industry trends, or economic conditions, and merit further investigation and strategic adjustments to optimize cash flow and overall financial performance.
Peer comparison
Jul 27, 2024