Core & Main Inc (CNM)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.06 | 5.63 | 5.40 | 5.36 | 7.00 | 7.35 | 7.21 | 6.97 | 5.73 | 5.60 | 4.57 | 4.92 | 5.26 | 4.95 | 4.82 | 4.18 | 4.38 | 4.02 | 5.01 | 5.07 |
| Receivables turnover | — | — | — | — | — | 7.10 | — | 5.83 | — | 4.99 | — | — | 7.16 | — | 5.38 | — | 5.09 | — | — | 5.88 |
| Payables turnover | — | — | — | — | — | 11.16 | — | 8.89 | — | 8.35 | — | — | 11.51 | — | 7.90 | — | 5.42 | — | — | 7.14 |
| Working capital turnover | 6.42 | 5.67 | 5.03 | 5.42 | 6.50 | 6.92 | 5.87 | 5.66 | 4.96 | 4.58 | 4.47 | 4.27 | 4.60 | 4.81 | 4.66 | 4.55 | 4.98 | 4.83 | 5.54 | 5.60 |
The activity ratios of Core & Main Inc for the period between January 30, 2022, and January 31, 2025, exhibit varying trends in efficiency.
1. Inventory Turnover:
- The inventory turnover ratio, which measures how many times a company sells and replaces its inventory during a period, fluctuated between 4.02 and 7.35 over the period.
- The ratio peaked at 7.35 on January 28, 2024, indicating that the company turned over its inventory 7.35 times during that period.
- Generally, a higher inventory turnover ratio signifies efficient management of inventory levels and quicker sales.
2. Receivables Turnover:
- The receivables turnover ratio, which indicates how efficiently a company collects outstanding dues from customers, showed sporadic values throughout the period.
- Notably, there are several instances where the receivables turnover is not available (indicated by "—"), suggesting incomplete data or varying collection practices.
- A higher receivables turnover ratio is generally preferred as it indicates faster collection of receivables.
3. Payables Turnover:
- The payables turnover ratio, reflecting how quickly a company pays its suppliers, displayed fluctuations with some periods showing no data available.
- The highest payables turnover ratio recorded was 11.51 on January 29, 2023, indicating a faster rate of paying suppliers during that period.
- A higher payables turnover ratio can signify good relationships with suppliers and effective working capital management.
4. Working Capital Turnover:
- The working capital turnover ratio, which measures how efficiently working capital is used to generate revenue, showed a varying trend over the period.
- The ratio ranged from 4.55 to 6.92, with a peak at 6.92 on January 28, 2024, indicating that the company effectively utilized its working capital to generate revenue during that period.
- A higher working capital turnover ratio suggests efficient utilization of resources to drive sales and revenue growth.
In conclusion, analyzing the activity ratios of Core & Main Inc provides insights into its inventory management, receivables collection, payables management, and overall efficiency in utilizing working capital to drive business operations.
Average number of days
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.21 | 64.80 | 67.57 | 68.07 | 52.15 | 49.69 | 50.65 | 52.40 | 63.74 | 65.13 | 79.92 | 74.16 | 69.33 | 73.77 | 75.65 | 87.32 | 83.41 | 90.91 | 72.85 | 71.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 51.37 | — | 62.63 | — | 73.17 | — | — | 51.00 | — | 67.87 | — | 71.74 | — | — | 62.08 |
| Number of days of payables | days | — | — | — | — | — | 32.69 | — | 41.08 | — | 43.69 | — | — | 31.72 | — | 46.19 | — | 67.40 | — | — | 51.10 |
Based on the given data for Core & Main Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days, on average, a company holds its inventory before selling it.
- The trend in Core & Main Inc's DOH shows fluctuations over the periods analyzed, ranging from a high of 90.91 days on April 30, 2022, to a low of 49.69 days on January 28, 2024.
- A decreasing trend in DOH generally indicates efficient inventory management, as the company is selling inventory more quickly.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for a company to collect revenue after a sale is made.
- Core & Main Inc has incomplete data for DSO, with various periods showing no information, indicating possible limitations in data availability.
- Monitoring DSO is crucial for assessing the company's accounts receivable management and cash flow efficiency.
3. Number of Days of Payables:
- This ratio reflects how long a company takes to pay its suppliers.
- Core & Main Inc's data on payables days suggests a decreasing trend, with the number of days of payables declining over the periods analyzed.
- A decreasing trend in payables days can indicate improved negotiation terms with suppliers but may also reflect potential liquidity challenges.
In conclusion, analyzing these activity ratios provides insight into Core & Main Inc's operational efficiency in managing inventory, collecting receivables, and paying suppliers. Monitoring these ratios over time can help evaluate the company's working capital management and overall financial health.
Long-term
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 45.78 | 22.50 | 49.87 | 51.14 | 47.24 | 50.58 | 60.46 | 65.10 | 67.30 | 65.20 | 62.28 | 59.61 | 57.71 | 20.92 | 55.29 |
| Total asset turnover | 1.27 | 1.16 | 1.08 | 1.06 | 1.28 | 1.36 | 1.45 | 1.40 | 1.32 | 1.22 | 1.24 | 1.29 | 1.39 | 1.36 | 1.32 | 1.22 | 1.16 | 1.12 | 1.16 | 1.17 |
The fixed asset turnover ratio for Core & Main Inc shows a fluctuating trend over the past few years, indicating varying efficiency in generating sales from fixed assets. The ratio ranged from a high of 67.30 in October 2022 to a low of 22.50 in October 2023. This suggests that the company's ability to utilize its fixed assets to generate revenue has been inconsistent.
On the other hand, the total asset turnover ratio reflects how well the company utilizes all its assets to generate sales. The ratio saw fluctuations as well, with a range of 1.06 in April 2024 to 1.45 in October 2023. The ratios generally show a decreasing trend after reaching a peak in October 2023, indicating a potential decline in the efficiency of generating sales from total assets.
Overall, the analysis of both fixed asset turnover and total asset turnover ratios indicates that Core & Main Inc may need to focus on optimizing its asset utilization to improve efficiency in generating sales. Monitoring these ratios over time can provide insights into the company's operational performance and effectiveness in managing its assets.