Shares of Dycom Industries (DY) are moving on volatility today 1.94% or 2.19 from the open. The NYSE listed company saw a recent bid of 114.97 and 156319 shares have traded hands in the session.

Stock market knowledge can be highly powerful. Successful investors are often highly knowledgeable and have put in the appropriate amount of time to become this way. Proper stock market knowledge may take a long time to acquire. Investors may spend countless hours trying to get an edge, and they may still feel like they are swimming upstream. Preparation and common sense can be highly important when trying to stay on top of the equity market. These days, there is no shortage of information for investors to get their hands on. The challenge then becomes how best to use the information at hand in order to develop knowledge that will help drive profits higher.

Turning to Return on Assets or ROA, Dycom Industries (DY) has a current ROA of 8.19. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets.

A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.

Now let’s take a look at how the fundamentals are stacking up for Dycom Industries (DY). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued.

One indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Dycom Industries (DY) currently has Return on Equity of 22.76. ROE is a ratio that measures profits generated from the investments received from shareholders.

In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.

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