Dycom Industries Inc (DY)

The solvency ratios for Dycom Industries, Inc. indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

1. Debt-to-assets ratio:
- The trend of Dycom's debt-to-assets ratio has been fluctuating over the past five years, ranging from 0.30 to 0.40.
- The ratio decreased in 2021 but increased in 2022 before declining again in 2023 and 2024.
- With a current ratio of 0.32, Dycom's debt represents 32% of its total assets, indicating that a significant portion of the company's assets are financed through debt.

2. Debt-to-capital ratio:
- Dycom's debt-to-capital ratio has shown a similar fluctuating trend, ranging from 0.42 to 0.53 over the same period.
- The ratio decreased in 2021 before increasing in 2022 and 2023, and then slightly decreasing in 2024.
- A current ratio of 0.43 implies that 43% of Dycom's capital structure is comprised of debt.

3. Debt-to-equity ratio:
- Dycom's debt-to-equity ratio has also exhibited fluctuations, varying from 0.72 to 1.11.
- The ratio decreased in 2021, increased in 2022 and 2023, and then decreased again in 2024.
- With a current ratio of 0.77, Dycom has 77 cents in debt for every dollar of equity, indicating a moderate reliance on debt financing.

4. Financial leverage ratio:
- The financial leverage ratio captures the overall debt level within Dycom's capital structure and has ranged from 2.40 to 2.79.
- The ratio decreased in 2021, increased in 2022, and fluctuated in 2023 and 2024.
- A ratio of 2.39 indicates that Dycom's assets are financed more than two times by debt, highlighting the company's leverage position.

In summary, Dycom Industries, Inc. has shown varying levels of solvency ratios over the past five years, indicating fluctuations in its debt levels and capital structure. The company has maintained a moderate reliance on debt financing, with some fluctuations in leverage ratios over the period analyzed.

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Coverage ratios

Dycom Industries, Inc.'s interest coverage ratio has shown a fluctuating trend over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.

In January 2024, the interest coverage ratio improved to 6.14, indicating that Dycom Industries, Inc. generated sufficient operating income to cover its interest expenses more than six times. This suggests a stronger ability to meet interest payments compared to the previous years.

In contrast, January 2022 witnessed a lower interest coverage ratio of 2.46, signaling a lower capacity to cover interest obligations with operating income. However, it improved from the previous year, suggesting a positive trend.

Overall, Dycom Industries, Inc.'s interest coverage has been volatile but generally improving in recent years. Investors and creditors may view this positively as it indicates a strengthening ability to meet interest obligations from operating earnings.