Science Applications International Corporation Common Stock (SAIC)

Based on the liquidity ratios for Science Applications International Corporation Common Stock over the past five years, the current ratio has been gradually decreasing from 1.27 in January 2020 to 0.98 in February 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets.

Similarly, the quick ratio has also shown a declining trend from 1.14 in January 2020 to 0.87 in February 2024. This suggests that the company's ability to cover its immediate liabilities with its most liquid assets has weakened over the years.

The cash ratio, which provides a more stringent measure of liquidity by considering only cash and cash equivalents, has been consistently low, ranging from 0.08 to 0.17 over the five-year period. This indicates that Science Applications International Corporation may have limited cash reserves available to meet its short-term obligations.

Overall, the downward trend in both the current ratio and quick ratio, combined with consistently low cash ratio, raises concerns about the company's liquidity position. It is important for investors and stakeholders to closely monitor Science Applications International Corporation's ability to generate sufficient cash flows or secure additional funding to address its liquidity challenges.

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Additional liquidity measure

The cash conversion cycle of Science Applications International Corporation Common Stock has shown a decreasing trend over the past five years. As of February 2, 2024, the cash conversion cycle stood at 12.75 days, reflecting the company's ability to efficiently convert its investments in raw materials and other resources into cash.

The decreasing trend in the cash conversion cycle indicates that Science Applications International Corporation has been able to manage its inventory, accounts receivable, and accounts payable more effectively over the years. This efficiency in working capital management suggests that the company has improved its cash flow and liquidity position.

A shorter cash conversion cycle implies that Science Applications International Corporation is able to generate cash more quickly, which can be beneficial for reinvesting in the business, paying off debts, or returning value to shareholders. This improvement in the cash conversion cycle reflects positively on the company's operational efficiency and financial stability.