Science Applications International Corporation Common Stock (SAIC)

Based on the provided data, we can analyze the liquidity ratios of Science Applications International Corporation Common Stock over the past five years.

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
- In January 2021, the current ratio was 1.01, indicating that the company's current assets were just sufficient to cover its current liabilities.
- The ratio decreased to 0.93 by January 2022, suggesting a potential strain on the company's liquidity position.
- However, there was an improvement in the ratio to 1.06 by February 2023, showing a better ability to meet short-term obligations.
- The ratio declined to 0.98 by February 2024 and further dropped to 0.83 by January 2025, indicating potential liquidity challenges as current liabilities exceeded current assets.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- The data shows a declining trend in the quick ratio over the years.
- In January 2021, the quick ratio was 0.89, suggesting a moderate ability to meet short-term obligations without relying on inventory.
- The ratio decreased to 0.83 by January 2022, indicating a decrease in the company's ability to cover current liabilities with its most liquid assets.
- Subsequent years saw a minor improvement and reduction in the quick ratio, with the latest value standing at 0.76 in January 2025, signaling a potential liquidity challenge.

3. Cash Ratio:
- The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.
- The trend in the cash ratio shows a general decline over the years.
- In January 2021, the cash ratio was 0.13, indicating that the company had $0.13 in cash and cash equivalents for every dollar of current liabilities.
- The ratio declined to 0.08 by January 2022, suggesting a lower cash position relative to current liabilities.
- Although there were slight fluctuations in the following years, the cash ratio dropped to 0.04 by January 2025, indicating a potential liquidity risk due to a decreased ability to cover short-term obligations with cash holdings.

In conclusion, the liquidity ratios of Science Applications International Corporation Common Stock have shown a deteriorating trend over the past five years, with decreasing current, quick, and cash ratios, pointing towards potential liquidity challenges and the need for careful management of short-term obligations.

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Additional liquidity measure

The cash conversion cycle of Science Applications International Corporation Common Stock has exhibited a downward trend over the past five years, indicating an improvement in the efficiency of the company's cash flow management. Starting at 24.83 days in January 29, 2021, the cycle decreased to 20.07 days by January 28, 2022, further dropping to 15.43 days by February 3, 2023. Subsequently, the cycle decreased to 13.49 days by February 2, 2024, before experiencing a slight increase to 13.84 days by January 31, 2025. Overall, the company has successfully reduced the time it takes to convert its investments in inventory and accounts receivable into cash, which suggests improved working capital management and operational efficiency.