Core & Main Inc (CNM)
Inventory turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,962,000 | 5,876,000 | 4,579,000 |
| Inventory | US$ in thousands | 766,000 | 1,047,000 | 856,000 |
| Inventory turnover | 7.78 | 5.61 | 5.35 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,962,000K ÷ $766,000K
= 7.78
Core & Main Inc's inventory turnover has been gradually increasing over the past three years, reflecting improvements in managing its inventory levels efficiently. The inventory turnover ratio has risen from 5.35 in January 2022 to 5.61 in January 2023, and further increased to 7.78 in January 2024.
This indicates that Core & Main Inc is selling its inventory at a faster rate compared to the previous years. A higher inventory turnover ratio typically signifies that the company is effectively managing its inventory by efficiently selling and restocking goods.
The significant improvement in inventory turnover suggests that Core & Main Inc is managing its inventory more effectively, which can lead to reduced carrying costs and potentially improved cash flow. It also indicates that the company may be responding well to changes in customer demand and optimizing its supply chain operations.