Core & Main Inc (CNM)
Payables 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 | |||
| Payables | US$ in thousands | 504,000 | 646,000 | 601,000 | 581,000 | 479,000 | 701,000 | 826,000 | 859,000 | 608,000 | 613,300 | 564,900 |
| Payables turnover | 11.83 | 9.11 | 9.75 | 10.07 | 12.27 | 8.22 | 6.58 | 5.83 |
January 28, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,962,000K ÷ $504,000K
= 11.83
The analysis of Core & Main Inc payables turnover reveals fluctuations in the efficiency of the company's accounts payable management over the past several quarters. The payables turnover ratio measures how many times a company pays off its average accounts payable balance in a given period.
From the provided data, it can be observed that the payables turnover ratio has varied significantly, ranging from 5.83 to 12.27 over the past eleven quarters. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may be a positive sign of strong liquidity and efficient working capital management.
In particular, the payables turnover ratio peaked at 12.27 in January 2023, suggesting that Core & Main Inc was able to settle its accounts payable more quickly during that quarter. Conversely, the lowest ratio of 5.83 in August 2021 indicates that the company took a longer time to pay off its suppliers' invoices compared to other periods.
Overall, fluctuations in the payables turnover ratio can be influenced by various factors, such as changes in payment terms with suppliers, seasonal fluctuations in purchasing activities, and overall cash flow management. Continuous monitoring of this ratio can provide valuable insights into the efficiency of Core & Main Inc's accounts payable practices and their impact on working capital management.