Dycom Industries Inc (DY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.44 | 3.17 | 3.06 | 3.50 | 3.39 | 3.43 | 3.18 | 3.21 | 3.32 | 3.46 | 3.55 | 3.69 | 3.30 | 3.44 | 2.61 | 2.73 | 3.18 | 4.51 | 3.90 | 3.87 |
| Quick ratio | 3.04 | 2.77 | 2.70 | 3.07 | 2.90 | 2.95 | 2.80 | 2.82 | 2.92 | 3.06 | 3.23 | 3.17 | 2.72 | 0.79 | 1.97 | 2.08 | 2.30 | 3.58 | 2.76 | 2.59 |
| Cash ratio | 0.08 | 0.09 | 0.24 | 0.07 | 0.23 | 0.21 | 0.52 | 0.18 | 0.32 | 0.51 | 0.85 | 0.71 | 0.62 | 0.79 | 0.05 | 0.06 | 0.11 | 1.54 | 0.22 | 0.07 |
Dycom Industries Inc has maintained a strong current ratio over the past few years, indicating a healthy ability to meet its short-term obligations. The current ratio has consistently been above 3, with the latest ratio standing at 3.44 as of July 27, 2024. This suggests that the company has more than enough current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets, also reflects a good liquidity position for Dycom Industries Inc. The quick ratio has been above 2 in most periods, with the latest ratio reported as 3.00 on July 27, 2024. This indicates that the company has a strong ability to meet its immediate obligations without relying on inventory for liquidity.
The cash ratio, which is the most stringent measure of liquidity, has shown some variability over the years but has generally been at satisfactory levels. The latest cash ratio on July 27, 2024, stands at 0.04, indicating that Dycom Industries Inc may have a lower level of cash on hand relative to its current liabilities.
Overall, based on the liquidity ratios, Dycom Industries Inc appears to have a healthy liquidity position, with consistent current and quick ratios above 2, indicating a strong ability to meet its short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Dycom Industries Inc has fluctuated over the past few years. The cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From January 2020 to January 2021, the company's cash conversion cycle decreased significantly from 93.53 days to -13.40 days. A negative cash conversion cycle suggests that Dycom Industries Inc may be receiving cash from customers before paying its suppliers, which can be advantageous for cash flow management.
However, the cycle increased to 112.45 days by July 2024, indicating a lengthened period of time for the company to convert its investments into cash. This may be a result of various factors such as slower inventory turnover, longer collection periods from customers, and delayed payment to suppliers.
Overall, Dycom Industries Inc should aim to optimize its cash conversion cycle to ensure efficient management of working capital. By reducing the cycle time, the company can maximize cash flow, minimize financial risk, and improve overall liquidity position.