Science Applications International Corporation Common Stock (SAIC)

Short-term

Turnover ratios

The Inventory turnover ratio of Science Applications International Corporation Common Stock has shown a generally increasing trend over the periods analyzed, indicating an improvement in the efficiency of inventory management. The company's ability to turn over its inventory has substantially increased from 32.84 in May 2020 to a peak of 2,190.67 in February 2, 2024, which suggests that the company has been able to sell its inventory rapidly.

In terms of Receivables turnover, the ratio has been relatively stable, with minor fluctuations observed over the periods. This ratio measures how efficiently the company collects outstanding receivables from its customers. The stability in this ratio indicates that the company has been consistent in collecting payments from its customers within a certain period.

The Payables turnover ratio, which measures the company's ability to pay off its suppliers, shows a fluctuating pattern. The ratio increased from 12.12 in January 29, 2021, to 11.59 in February 2, 2024, indicating a slight improvement in the payment cycle to suppliers.

The Working capital turnover ratio reflects how efficiently the company is utilizing its working capital to generate revenue. The values of this ratio fluctuated significantly across the periods analyzed. This could suggest variations in the company's operational efficiency and its ability to generate revenue from the working capital available.

Overall, the activity ratios of Science Applications International Corporation Common Stock indicate a mix of efficiency and operational challenges that would require further investigation to understand the underlying reasons for the fluctuations observed.

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Average number of days

Based on the data provided, we can analyze the activity ratios of Science Applications International Corporation Common Stock as follows:

1. Days of Inventory on Hand (DOH):
- The company managed its inventory efficiently over the period of observation, with a notable decline in the days of inventory on hand from 11.12 days on May 1, 2020, to a low of 0.17 days on February 2, 2024. This indicates that the company was able to turn over its inventory quickly.
- Subsequently, there was an absence of data for inventory from May 3, 2024. This could be due to a change in reporting methods or a significant decrease in inventory levels during that period.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding metric shows the number of days it takes for a company to collect its accounts receivable. Science Applications International Corporation managed its receivables reasonably well, with fluctuations in the DSO metric ranging from 45.04 days on February 3, 2023, to 56.30 days on July 31, 2020.
- There was missing data for DSO from May 5, 2023, to August 4, 2023. This absence could suggest a change in reporting practices or inconsistencies in data collection during that period.

3. Number of Days of Payables:
- The Number of Days of Payables ratio reflects how long it takes a company to pay its suppliers. The data available shows that Science Applications International Corporation had varied payment practices over the observed period, with days of payables ranging from 30.13 days on January 29, 2021, to 34.97 days on January 31, 2025.
- Notably, there were periods where data on payables was not provided, indicating potential changes in reporting or payment practices during those intervals.

Overall, the company exhibited relatively efficient management of its inventory, receivables, and payables during the period under review. The fluctuation in activity ratios may signify changes in operational efficiency, management strategies, or industry dynamics impacting Science Applications International Corporation's working capital management.

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Long-term

Science Applications International Corporation Common Stock has shown a consistent improvement in its fixed asset turnover ratio over the past few years, indicating that the company is becoming more efficient in generating revenue from its fixed assets. The ratio has steadily increased from 64.56 in May 2020 to 71.91 in January 2025.

On the other hand, the total asset turnover ratio has also been on an upward trend, suggesting that the company is effectively utilizing all its assets to generate sales. The ratio has increased from 1.08 in May 2020 to 1.43 in January 2025, reflecting an improvement in the company's overall operational efficiency.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios demonstrates Science Applications International Corporation Common Stock's ability to efficiently manage its assets and generate sales, which is a positive indicator of the company's financial health and operational effectiveness.