Core & Main Inc (CNM)
Activity ratios
Short-term
Turnover ratios
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.78 | 7.15 | 6.54 | 5.68 | 5.61 | 5.02 | 4.66 | 4.71 |
| Receivables turnover | 6.80 | 5.40 | 5.32 | 5.97 | 6.90 | 5.08 | 4.79 | 4.92 |
| Payables turnover | 11.83 | 9.11 | 9.75 | 10.07 | 12.27 | 8.22 | 6.58 | 5.83 |
| Working capital turnover | 6.63 | 5.25 | 4.89 | 4.79 | 4.43 | 4.40 | 4.38 | 4.82 |
Core & Main Inc's activity ratios provide insights into the efficiency of the company's operating cycle and management of its assets and liabilities.
1. Inventory Turnover: This ratio measures how many times inventory is sold and replaced over a period. Core & Main Inc's inventory turnover has been gradually increasing over the periods, indicating that the company is efficiently managing its inventory levels and selling products at a relatively faster pace.
2. Receivables Turnover: This ratio reflects how quickly the company collects outstanding receivables from its customers. Core & Main Inc's receivables turnover fluctuates, but generally shows a healthy collection cycle, with a higher turnover implying faster collection of receivables.
3. Payables Turnover: This ratio indicates how efficiently the company pays its suppliers. Core & Main Inc's payables turnover has been quite volatile, but generally higher turnover indicates that the company pays its suppliers more frequently, potentially taking advantage of early payment discounts.
4. Working Capital Turnover: This ratio evaluates the efficiency of the company's use of working capital to generate sales. Core & Main Inc's working capital turnover has shown fluctuations but overall indicates that the company is effectively utilizing its working capital to generate sales. Higher turnover ratios suggest efficient use of working capital.
In summary, Core & Main Inc's activity ratios demonstrate a generally positive trend in the management of its assets and liabilities. Efficiencies in inventory management, receivables collection, payables management, and working capital utilization are key indicators of the company's operational effectiveness.
Average number of days
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.90 | 51.08 | 55.79 | 64.25 | 65.04 | 72.70 | 78.27 | 77.43 |
| Days of sales outstanding (DSO) | days | 53.64 | 67.63 | 68.58 | 61.12 | 52.93 | 71.87 | 76.20 | 74.25 |
| Number of days of payables | days | 30.86 | 40.05 | 37.42 | 36.24 | 29.75 | 44.39 | 55.45 | 62.57 |
The activity ratios of Core & Main Inc provide insight into the efficiency of the company in managing its inventory, collecting receivables, and paying its payables:
1. Days of Inventory on Hand (DOH): The trend in the DOH ratio shows an improvement over the recent quarters, indicating a more efficient management of inventory. The company has been able to reduce the number of days it holds inventory, which is a positive sign as it suggests a quicker turnover of inventory and potentially lower carrying costs.
2. Days of Sales Outstanding (DSO): The DSO ratio has fluctuated over the quarters, but overall, the company has been able to collect receivables more quickly in the recent period. A lower DSO suggests that the company is efficient in collecting revenue from customers, which can improve its cash flow and liquidity.
3. Number of Days of Payables: The trend in the days of payables indicates that the company has been able to manage its payables effectively by extending payment terms with suppliers. This strategy can help improve cash flow and working capital management. However, a significant increase in days of payables could also signal strained supplier relationships.
Overall, Core & Main Inc's activity ratios show improvements in inventory turnover and collection of receivables, with effective management of payables. These trends suggest that the company is enhancing its operational efficiency and cash flow management.
Long-term
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | |
|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 43.85 | 46.18 | 50.40 | 54.19 | 62.71 | 61.57 | 59.95 | 57.60 |
| Total asset turnover | 1.31 | 1.29 | 1.30 | 1.33 | 1.34 | 1.25 | 1.18 | 1.12 |
The fixed asset turnover ratio for Core & Main Inc has been relatively stable over the past eight quarters, ranging from 43.85 to 62.71. This ratio measures how efficiently the company generates revenue from its fixed assets, such as property, plant, and equipment. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales.
On the other hand, the total asset turnover ratio has shown some fluctuations, but generally remains above 1.0, indicating that the company is generating more revenue relative to its total assets. The total asset turnover ratio measures how efficiently a company is using all of its assets to generate sales.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Core & Main Inc is effectively utilizing its assets to generate revenue. However, the trends in these ratios over time can provide insights into the company's operational efficiency and financial performance.