Science Applications International Corporation Common Stock (SAIC)

Short-term

Turnover ratios

The inventory turnover for Science Applications International Corporation has shown a significant increase over the years, reaching 2,190.67 in February 2024 from 67.54 in January 2020. This indicates that the company has been able to manage its inventory more efficiently and quickly convert it into sales.

The receivables turnover ratio has also remained relatively stable over the years, ranging from 5.73 in January 2020 to 8.28 in February 2024. This suggests that the company has been effective in collecting its receivables within a reasonable timeframe.

The payables turnover ratio has shown fluctuations but has generally been around 10-12 times in recent years. This indicates that Science Applications International Corporation has been able to manage its payables effectively by paying its obligations in a timely manner.

The working capital turnover ratio, while not available for all years, shows a significant increase in efficiency from 20.83 in January 2020 to 106.83 in February 2023. This indicates that the company has been able to generate more revenue from its working capital.

Overall, Science Applications International Corporation has shown improvements in its activity ratios over the years, reflecting efficient management of its inventory, receivables, payables, and working capital. These ratios suggest that the company has been effectively managing its resources and optimizing its operational efficiency.

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Average number of days

Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. A lower DOH indicates that the company is selling its products quickly and not tying up too much capital in inventory. Science Applications International Corporation's DOH has been improving over the years, decreasing from 5.40 days in January 2020 to 0.17 days in February 2024, which is a positive trend.

Days of Sales Outstanding (DSO) measures how quickly a company collects its accounts receivable. A lower DSO suggests that the company is collecting payments from customers promptly. In the case of Science Applications International Corporation, the DSO has fluctuated but generally improved over the years, declining from 63.75 days in January 2020 to 44.08 days in February 2024.

Number of Days of Payables indicates the average number of days it takes the company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to pay its bills, which can have cash flow benefits. Science Applications International Corporation's number of days of payables has also shown variability but remained relatively stable over the years, ranging between 30.13 days in January 2021 and 34.18 days in January 2022.

Overall, Science Applications International Corporation has shown improvements in its efficiency ratios over the years. The company has managed to reduce its inventory holding period and accounts receivable collection period while maintaining a stable payment period to suppliers, indicating better overall operational efficiency.

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Long-term

Science Applications International Corporation (SAIC) has shown a consistent improvement in its long-term activity ratios over the past five years. The fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate sales, has generally been increasing, indicating that SAIC is becoming more efficient in utilizing its fixed assets to generate revenue. This improvement suggests better operational efficiency and effective asset management.

Similarly, the total asset turnover ratio, which assesses the effectiveness of the company in generating sales relative to its total assets, has also been on an upward trend. The increase in this ratio over the years indicates that SAIC is generating more revenue from its total assets, reflecting improved efficiency in asset utilization.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that SAIC has been successful in enhancing its operational efficiency and effectively utilizing its assets to generate sales. These improvements are positive signals of the company's overall financial health and efficiency in managing its resources.