Science Applications International Corporation Common Stock (SAIC)

Liquidity ratios

Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020 Jan 31, 2020 Nov 1, 2019 Aug 2, 2019 May 3, 2019
Current ratio 0.98 1.13 1.14 1.08 1.06 1.01 1.07 0.97 0.93 0.99 0.97 1.03 1.01 0.98 1.03 1.05 1.27 1.20 1.17 1.30
Quick ratio 0.87 1.08 1.08 0.27 0.93 0.90 0.95 0.87 0.83 0.90 0.87 0.92 0.89 0.86 0.90 0.19 1.14 0.14 0.16 0.15
Cash ratio 0.08 0.25 0.29 0.27 0.10 0.04 0.08 0.04 0.08 0.11 0.10 0.19 0.13 0.13 0.14 0.19 0.17 0.14 0.16 0.15

The liquidity ratios of Science Applications International Corporation Common Stock exhibit some fluctuations over the past few quarters. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, there was a slight dip in the current ratio in the most recent quarter, falling to 0.98. This suggests a potential strain on short-term liquidity.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, shows a similar fluctuation trend. While the quick ratio has generally been above 1, indicating a strong ability to meet short-term liabilities without relying on inventory, there was a significant drop in the quick ratio to 0.27 in May 5, 2023. This could indicate a potential liquidity challenge if immediate payments needed to be made.

Lastly, the cash ratio, which focuses solely on the company's cash and cash equivalents compared to its current liabilities, also demonstrates fluctuations over time. The cash ratio has varied between 0.04 and 0.29, with the most recent ratio standing at 0.25 on Nov 3, 2023. This indicates that the company has a moderate level of cash on hand to cover its short-term obligations.

Overall, the liquidity ratios of Science Applications International Corporation Common Stock suggest that while the company generally maintains a satisfactory liquidity position, there have been periods of potential strain on short-term liquidity, highlighting the importance of closely monitoring cash flow management and working capital efficiency.

Additional liquidity measure

Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020 Jan 31, 2020 Nov 1, 2019 Aug 2, 2019 May 3, 2019
Cash conversion cycle days 12.75 52.40 50.17 4.11 15.43 59.40 58.35 61.45 20.07 63.04 62.59 61.65 24.83 65.78 67.55 11.12 34.38 9.79 9.56 10.17

The cash conversion cycle of Science Applications International Corporation Common Stock has shown variations over the past several quarters. It is calculated by adding the days inventory outstanding (DIO) to the days sales outstanding (DSO) and then subtracting the days payable outstanding (DPO).

The company had a relatively short cash conversion cycle of 4.11 days in May 5, 2023, indicating efficient management of its working capital. However, in Nov 3, 2023, the cycle increased significantly to 52.40 days, suggesting potential issues with inventory management and collection of receivables.

Overall, the cash conversion cycle has exhibited fluctuations, with periods of both efficiency and challenges in working capital management. It is important for the company to closely monitor and address factors influencing the DIO, DSO, and DPO components to ensure optimal utilization of cash resources and operational efficiency.