Core & Main Inc (CNM)
Inventory turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,962,000 | 5,888,000 | 5,862,000 | 5,851,000 | 5,876,000 | 5,763,900 | 5,437,200 | 5,011,200 | |||
| Inventory | US$ in thousands | 766,000 | 824,000 | 896,000 | 1,030,000 | 1,047,000 | 1,148,000 | 1,166,000 | 1,063,000 | 856,000 | 721,200 | 593,200 |
| Inventory turnover | 7.78 | 7.15 | 6.54 | 5.68 | 5.61 | 5.02 | 4.66 | 4.71 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,962,000K ÷ $766,000K
= 7.78
The inventory turnover of Core & Main Inc has seen a consistent improvement over the past several quarters. The ratio has been steadily increasing from 4.71 in May 2022 to 7.78 in January 2024. This indicates that the company's efficiency in managing its inventory has been on the rise.
A higher inventory turnover ratio suggests that Core & Main is selling its inventory at a faster pace, which is generally seen as a positive indicator of effective inventory management. It implies that the company is able to quickly replenish its stock and convert inventory into sales, thus reducing the risk of obsolete or excess inventory.
Overall, the increasing trend in inventory turnover for Core & Main Inc signals operational efficiency and effective inventory management practices, which could lead to improved cash flow and profitability in the long term.