Dycom Industries Inc (DY)
Cash ratio
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 101,086 | 224,186 | 310,757 | 11,770 | 54,560 |
| Short-term investments | US$ in thousands | 1,372 | 19,919 | 14,083 | 12,817 | 17,447 |
| Total current liabilities | US$ in thousands | 506,304 | 469,551 | 381,796 | 448,490 | 323,025 |
| Cash ratio | 0.20 | 0.52 | 0.85 | 0.05 | 0.22 |
January 27, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($101,086K
+ $1,372K)
÷ $506,304K
= 0.20
The cash ratio of Dycom Industries, Inc. has shown fluctuations over the past five years. The ratio has decreased from 1.06 in January 2020 to 0.39 in January 2024. This suggests a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The highest cash ratio was observed in January 2022 at 0.99, indicating that the company had a strong ability to meet its short-term obligations with its readily available cash during that period. However, it declined to 0.53 in January 2021, reflecting a temporary weakening of its liquidity position.
It is important for Dycom Industries, Inc. to carefully manage its cash resources to ensure that it maintains a healthy cash ratio, as a low ratio may indicate potential liquidity issues and difficulties in meeting short-term obligations. Further analysis of the company's cash management practices and overall financial health is recommended to understand the reasons behind these fluctuations in the cash ratio.
Peer comparison
Jan 27, 2024