Dycom Industries Inc (DY)
Quick ratio
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 101,086 | 224,186 | 310,757 | 11,770 | 54,560 |
| Short-term investments | US$ in thousands | 20,218 | 19,919 | 14,083 | 12,817 | 17,447 |
| Receivables | US$ in thousands | 1,246,490 | 1,070,940 | 909,408 | 859,863 | 820,632 |
| Total current liabilities | US$ in thousands | 506,304 | 469,551 | 381,796 | 448,490 | 323,025 |
| Quick ratio | 2.70 | 2.80 | 3.23 | 1.97 | 2.76 |
January 27, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($101,086K
+ $20,218K
+ $1,246,490K)
÷ $506,304K
= 2.70
The quick ratio, also known as the acid-test ratio, measures a company's ability to use its most liquid assets to cover its current liabilities. A higher quick ratio indicates a better ability to meet short-term obligations.
Looking at Dycom Industries, Inc.'s quick ratio over the past five years, we observe fluctuations in the ratio. The quick ratio declined from 3.59 in 2020 to 2.44 in 2021, suggesting a decrease in the company's ability to cover its current liabilities with its most liquid assets. However, there was an improvement in the quick ratio to 3.34 in 2022, indicating a positive trend in liquidity.
In the most recent fiscal year, the quick ratio stood at 2.84, which is slightly lower compared to the previous year's ratio of 2.93. While the quick ratio is above 1, indicating that Dycom Industries, Inc. has an adequate level of liquid assets to meet short-term liabilities, the slight decrease from the previous year warrants further monitoring.
Overall, Dycom Industries, Inc.'s quick ratio has shown some variability over the years, with recent ratios indicating a relatively stable liquidity position. Investors and stakeholders may want to closely monitor future changes in the quick ratio to assess the company's short-term liquidity health.
Peer comparison
Jan 27, 2024