Dycom Industries Inc (DY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.12 | 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 |
| Quick ratio | 2.76 | 3.00 | 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 |
| Cash ratio | 0.03 | 0.04 | 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 |
Based on the liquidity ratios of Dycom Industries Inc over the past few quarters, we can observe the following trends:
1. Current Ratio: Dycom's current ratio has remained relatively stable and consistently above 3 over the periods analyzed. This indicates that the company has a strong ability to cover its short-term obligations with its current assets. The company has maintained a healthy level of current assets relative to current liabilities, providing a cushion against potential liquidity issues.
2. Quick Ratio: Similarly, Dycom's quick ratio has also been relatively stable, although slightly lower than the current ratio. The quick ratio, which excludes inventory from current assets, suggests that the company may have slightly less liquidity when compared to the current ratio. However, the ratio has generally remained above 2, indicating a comfortable level of liquidity to meet short-term obligations.
3. Cash Ratio: Dycom's cash ratio has shown more variability compared to the current and quick ratios. The ratio fluctuates significantly but has generally been above 0.2, except for one quarter where it dropped to 0.05. This indicates that the company holds a sufficient amount of cash to cover its immediate liabilities without relying heavily on other current assets.
In summary, Dycom Industries Inc has demonstrated strong liquidity positions based on its current, quick, and cash ratios. The company's ability to maintain ratios above certain thresholds indicates a sound financial health in terms of its ability to meet short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Dycom Industries Inc shows fluctuations over the past 20 quarters, ranging from as low as -13.40 days to as high as 121.89 days. 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 a more efficient management of working capital.
In analyzing Dycom's cash conversion cycle, we observe that there have been periods of both improvement and deterioration in the efficiency of its working capital management. For example, the company managed to significantly reduce its cash conversion cycle to -13.40 days in the 2021 quarter, which may indicate more efficient inventory turnover and collection of receivables. However, this negative cycle implies that the company was receiving cash from sales before paying its suppliers, which may have been an anomaly or a result of unique circumstances.
On the other hand, we see that in several quarters, such as in the 2024 and 2020 quarters, the cash conversion cycle exceeded 110 days, indicating a longer period of time between investing in inventory and receiving cash from sales. This may suggest potential issues with inventory management, sales collection, or payment terms with suppliers that could be impacting the company's liquidity and working capital efficiency.
Overall, Dycom Industries Inc's cash conversion cycle fluctuates over time, highlighting the importance of monitoring working capital management practices to ensure effective utilization of resources and cash flow optimization for the company.