Core & Main Inc (CNM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,621,000 | 6,557,000 | 6,552,000 | 6,557,000 | 6,585,000 | 6,464,800 | 6,054,600 | 5,471,600 | |||
| Receivables | US$ in thousands | 973,000 | 1,215,000 | 1,231,000 | 1,098,000 | 955,000 | 1,273,000 | 1,264,000 | 1,113,000 | 884,000 | 946,100 | 832,900 |
| Receivables turnover | 6.80 | 5.40 | 5.32 | 5.97 | 6.90 | 5.08 | 4.79 | 4.92 |
January 28, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,621,000K ÷ $973,000K
= 6.80
The receivables turnover ratio is a measure of how efficiently a company manages its accounts receivable and collects cash from its customers. The formula for receivables turnover is:
Receivables turnover = Net Credit Sales / Average Accounts Receivable
A higher receivables turnover indicates that the company is collecting cash from its customers more quickly, which is generally seen as a positive sign of efficiency.
Based on the receivables turnover data provided for Core & Main Inc from the table, we observe fluctuation in the ratio over the past year. The receivables turnover ratio ranged from a low of 4.79 in July 2022 to a high of 6.90 in January 2023.
The trend indicates that the company's ability to collect cash from its customers has been somewhat inconsistent over the past year. Although there was some improvement in the ratio in January 2023, it slightly decreased in subsequent periods.
It is important for Core & Main Inc to continuously monitor and manage its accounts receivable effectively to ensure a healthy balance between extending credit to customers and collecting cash in a timely manner. Efforts to improve the efficiency of accounts receivable management can lead to better cash flow and overall financial health for the company.