Core & Main Inc (CNM)
Fixed asset turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 6,621,000 | 6,585,000 | 4,906,000 |
| Property, plant and equipment | US$ in thousands | 151,000 | 105,000 | 94,000 |
| Fixed asset turnover | 43.85 | 62.71 | 52.19 |
January 28, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,621,000K ÷ $151,000K
= 43.85
Core & Main Inc's fixed asset turnover ratio has fluctuated over the past three years.
In January 2022, the fixed asset turnover was 52.19, indicating that the company generated $52.19 in sales revenue for every dollar invested in fixed assets during that period.
By January 2023, the fixed asset turnover had increased significantly to 62.71, suggesting that the company was utilizing its fixed assets more efficiently to generate sales revenue.
However, in January 2024, the fixed asset turnover ratio decreased to 43.85, signaling that the company may not have been generating as much revenue relative to its fixed asset investments compared to the previous year.
Overall, fluctuations in the fixed asset turnover ratio may indicate changes in the company's operational efficiency and asset utilization over the years. It is essential for Core & Main Inc to analyze the underlying reasons for these fluctuations to ensure optimal utilization of its fixed assets in generating sales.