Dycom Industries Inc (DY)

Solvency 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
Debt-to-assets ratio 0.35 0.34 0.32 0.31 0.36 0.33 0.35 0.35 0.35 0.37 0.38 0.39 0.38 0.37 0.37 0.26 0.24 0.31 0.48 0.38
Debt-to-capital ratio 0.47 0.45 0.44 0.43 0.47 0.45 0.47 0.48 0.49 0.51 0.52 0.52 0.51 0.52 0.51 0.38 0.35 0.43 0.62 0.49
Debt-to-equity ratio 0.89 0.81 0.78 0.75 0.90 0.83 0.90 0.93 0.94 1.02 1.08 1.09 1.02 1.07 1.03 0.62 0.54 0.76 1.64 0.97
Financial leverage ratio 2.52 2.40 2.42 2.39 2.53 2.48 2.58 2.66 2.68 2.77 2.81 2.79 2.72 2.87 2.79 2.40 2.26 2.45 3.37 2.55

Dycom Industries Inc's solvency ratios indicate the company's ability to meet its financial obligations in the long term. The debt-to-assets ratio has been relatively stable over the past few quarters, ranging from 0.31 to 0.38, indicating that around 31% to 38% of the company's assets are financed by debt.

The debt-to-capital ratio and debt-to-equity ratio have also been stable over the quarters, with the debt-to-capital ratio ranging from 0.43 to 0.52 and the debt-to-equity ratio ranging from 0.75 to 1.09. These ratios suggest that Dycom Industries Inc relies on a moderate level of debt to finance its operations, with the majority of its capital coming from equity.

The financial leverage ratio, which measures the company's total assets relative to equity, has shown some fluctuation but has generally been around 2.4 to 2.8. This indicates that the company has been utilizing its assets to generate profits effectively but also carries a moderate level of financial risk.

Overall, Dycom Industries Inc's solvency ratios suggest a reasonably balanced capital structure with a manageable level of debt. However, there might be a need for monitoring the increasing trend in some ratios, such as the debt-to-equity ratio, to ensure the company's long-term financial health.

Coverage 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
Interest coverage 68.53 74.12 71.58 98.85 98.69 83.96 76.15 64.53 51.42 34.94 20.01 12.75 11.08 12.93 14.95 6.78 4.33 2.76 2.20 4.25

Dycom Industries Inc's interest coverage ratio has shown fluctuations over the past few years, reflecting the company's ability to meet its interest obligations. The interest coverage ratio indicates the company's ability to pay its interest expenses on outstanding debt with its operating income.

From January 2020 to October 2024, Dycom's interest coverage ratio has ranged from a high of 98.85 to a low of 2.20. The ratio peaked in January 2024 at 98.85, suggesting the company generated ample operating income to cover its interest payments nearly 99 times over. However, the ratio declined significantly to 2.20 by April 2022, indicating a tighter financial position and potential difficulties in meeting interest obligations.

The downward trend in the interest coverage ratio from 2022 to 2024 may raise concerns about Dycom's ability to service its debt effectively. A decreasing interest coverage ratio could signal increasing financial risk and potential liquidity challenges for the company. Investors and creditors may scrutinize this trend to assess the company's financial health and risk profile.

It is crucial for Dycom to monitor and improve its interest coverage ratio to ensure sustainable financial performance and maintain the confidence of stakeholders. Strengthening operational efficiency, managing debt levels, and enhancing profitability are strategies that Dycom may consider to enhance its interest coverage ratio and overall financial stability.