Science Applications International Corporation Common Stock (SAIC)

Short-term

Turnover ratios

Science Applications International Corporation has shown improvement in its inventory turnover ratio over the years, with a significant jump from 80.31 in January 29, 2021, to 2,190.67 in February 2, 2024. This indicates that the company is selling its inventory at a much faster rate in recent years, which can be a positive sign of efficient inventory management.

In terms of receivables turnover, the company has maintained a relatively stable performance, ranging from 7.20 to 8.14 over the years. This indicates that Science Applications International Corporation is efficient in collecting payments from its customers within a reasonable time frame.

The payables turnover ratio shows a slight fluctuation but overall fairly consistent performance, ranging from 10.44 to 12.12. This suggests that the company is managing its payables effectively, balancing its obligations to suppliers while also taking advantage of credit terms.

The working capital turnover ratio provides insights into how efficiently the company utilizes its working capital to generate revenue. While the data is missing for some years, in 2023, the ratio stood at 106.83, indicating that the company was generating revenue over 100 times the working capital.

Overall, Science Applications International Corporation's activity ratios reflect a mix of efficient inventory management, steady receivables collection, and effective management of payables. However, further analysis and comparison with industry benchmarks may provide a more comprehensive assessment of the company's operational efficiency.

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Average number of days

Science Applications International Corporation's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH) decreased from 4.55 days in January 2021 to 3.57 days in January 2022, indicating a more efficient management of inventory. However, it slightly increased to 3.80 days in February 2023 before significantly dropping to 0.17 days in February 2024, potentially signaling a reduction in excess inventory or faster inventory turnover. The absence of data for January 31, 2025, prevents a conclusive comparison.

2. Days of Sales Outstanding (DSO) remained relatively stable over the years, starting at 50.41 days in January 2021 and decreasing slightly to 48.80 days by January 31, 2025. This suggests that the company is maintaining a consistent collection period for its receivables.

3. The Number of Days of Payables started at 30.13 days in January 2021 and increased to 34.18 days by January 28, 2022, possibly indicating a trend of taking longer to pay its suppliers. The days decreased slightly to 33.42 days in February 2023 before dropping to 31.49 days in February 2024 and increasing to 34.97 days by January 31, 2025.

Overall, the analysis of these activity ratios suggests that Science Applications International Corporation has made improvements in managing inventory efficiently and collecting receivables promptly while also adjusting the payment period for its payables over the years.

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Long-term

The Fixed Asset Turnover ratio for Science Applications International Corporation Common Stock has shown a consistent upward trend over the past five years, increasing from 64.50 in January 29, 2021, to 71.91 in January 31, 2025. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets.

Similarly, the Total Asset Turnover ratio has also shown a positive trend, increasing from 1.22 in January 29, 2021, to 1.43 in January 31, 2025. This signifies that the company has been efficient in utilizing its total assets to generate revenue.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Science Applications International Corporation has been effectively managing its assets to drive sales growth and generate higher returns for its shareholders.