Core & Main Inc (CNM)
Total asset turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 6,621,000 | 6,585,000 | 4,906,000 |
| Total assets | US$ in thousands | 5,069,000 | 4,909,000 | 4,434,000 |
| Total asset turnover | 1.31 | 1.34 | 1.11 |
January 28, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,621,000K ÷ $5,069,000K
= 1.31
Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover indicates that the company is utilizing its assets more effectively to generate sales.
In the case of Core & Main Inc, the total asset turnover has been consistently above 1 over the past three years, indicating that the company is generating more revenue relative to its total assets. The gradual decline from 1.34 in 2023 to 1.31 in 2024 suggests a slight decrease in efficiency in asset utilization.
Overall, Core & Main Inc has maintained a healthy level of total asset turnover, reflecting efficient management of its assets to generate revenue. However, the company may want to monitor any further declines in this ratio to ensure continued optimal asset utilization.