SAIC Reports Mixed Financial Results for Q1 2024, Debtors Turnover Ratio at 5-Year High

Science Applications International Corp. (SAIC) recently announced its financial results for the quarter ending April 2024. The company, which provides information technology services, reported a flat performance for the quarter.

One positive aspect of the financials was the Debtors Turnover Ratio, which was the highest at 7.53% in the last five semi-annual periods. This indicates that SAIC has been able to sell its debtors at a faster rate.

However, there were some areas of concern in the financials. The Pre-Tax Profit for the quarter was at USD 95, which is a decrease of -40.99% compared to the average net sales of the previous four periods, which were at USD 161 million. This trend is a cause for concern in the near term.

Similarly, the Net Profit for the quarter was at USD 77 million, a decrease of -37.91% compared to the average net sales of the previous four periods, which were at USD 124.01 million. This trend is also very negative in the near term.

Another area of concern is the Operating Cash Flow, which was at its lowest at USD 412 million in the last three years. This indicates that the company's cash revenues from business operations are falling.

In terms of liquidity, SAIC's Cash and Equivalents were at their lowest at USD 151 million in the last six semi-annual periods. This shows that the company's short-term liquidity is deteriorating.

In conclusion, while SAIC has shown some positive aspects in its financials, there are also areas of concern that need to be addressed. Investors should carefully consider these factors before making any decisions regarding the company's stock.