Core & Main Inc (CNM)

Short-term

Turnover ratios

Core & Main Inc's activity ratios provide insight into how efficiently the company is managing its inventory, accounts receivable, accounts payable, and working capital.

1. Inventory Turnover: Core & Main Inc's inventory turnover has shown a positive trend over the years, indicating that the company is selling its inventory more quickly. The average inventory turnover for the period is around 6.48 times, with fluctuations from a low of 4.64 to a high of 7.78. This suggests that the company is effectively managing its inventory levels to meet demand.

2. Receivables Turnover: The data provided shows inconsistent reporting of receivables turnover, with missing values for some years. However, for the available data, the company has a receivables turnover of approximately 6.85 times, indicating that it collects its receivables efficiently. The missing values make it challenging to assess the trend over the years accurately.

3. Payables Turnover: Similar to receivables turnover, payables turnover data is incomplete, making it difficult to analyze the company's payment cycle efficiency. The available data shows an average payables turnover of approximately 12.05 times, which suggests that the company is managing its payables effectively.

4. Working Capital Turnover: Core & Main Inc's working capital turnover has been relatively stable over the years, with an average turnover of around 5.53 times. This ratio indicates how efficiently the company is utilizing its working capital to generate sales. The increasing trend from 4.43 to 6.42 demonstrates an improvement in working capital efficiency.

Overall, Core & Main Inc appears to be efficiently managing its inventory, receivables, payables, and working capital, as indicated by the activity ratios analyzed. The company's ability to turn its assets and liabilities effectively contributes to its overall financial performance and operational efficiency.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Core & Main Inc as follows:

1. Days of Inventory on Hand (DOH):
- The DOH indicates the average number of days it takes for the company to sell its inventory.
- The trend shows a decrease in the number of days from 78.70 days on January 31, 2023, to 46.90 days on January 28, 2024. This indicates an improvement in inventory management efficiency, as the company is selling its inventory faster.
- However, there was a slight increase in DOH to 57.25 days on January 31, 2024, followed by a further increase to 60.69 days on January 31, 2025. This suggests a potential slowdown in inventory turnover efficiency.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for the company to collect revenue after a sale.
- The data provided shows DSO of 52.93 days on January 29, 2023, which indicates that the company takes an average of 52.93 days to collect revenue from customers.
- There are missing data points for the following periods, which impacts the analysis of this ratio.

3. Number of Days of Payables:
- This ratio assesses how long the company takes to pay its suppliers.
- The data shows a relatively stable number of days of payables, with a small increase from 29.75 days on January 29, 2023, to 30.86 days on January 28, 2024.
- The following periods have missing data, making it difficult to track the trend accurately.

Overall, the trend in these activity ratios indicates variations in the efficiency of Core & Main Inc's operations related to inventory management, receivables collection, and payables turnover. The company may need to focus on optimizing these processes to enhance its working capital management and overall operational performance.

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Long-term

Core & Main Inc's fixed asset turnover ratio has shown a decreasing trend over the analyzed period, dropping from 62.71 in January 2023 to 43.85 in January 2024. However, there is missing data for January 31, 2024, and January 31, 2025. This ratio indicates that Core & Main Inc generated $43.85 in sales for every dollar invested in fixed assets in January 2024.

In comparison, the total asset turnover ratio, which measures the efficiency of the company in utilizing all its assets to generate sales, also experienced a slight decline over the period, from 1.34 in January 2023 to 1.27 in January 2025. This suggests that the company generated $1.27 in sales for every dollar of assets held at the end of January 2025. Overall, the analysis of these long-term activity ratios indicates a decline in the efficiency of asset utilization by Core & Main Inc.