Core & Main Inc (CNM)
Working capital turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 6,621,000 | 6,585,000 | 4,906,000 |
| Total current assets | US$ in thousands | 1,773,000 | 2,211,000 | 1,767,000 |
| Total current liabilities | US$ in thousands | 774,000 | 726,000 | 839,000 |
| Working capital turnover | 6.63 | 4.43 | 5.29 |
January 28, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,621,000K ÷ ($1,773,000K – $774,000K)
= 6.63
Core & Main Inc's working capital turnover has shown a positive trend over the past three years, increasing from 4.43 in January 2022 to 6.63 in January 2024. This indicates that the company has been more efficient in generating sales revenue in relation to its working capital during this period. A higher working capital turnover signifies that the company is effectively utilizing its working capital to support its operations and sales activities. The consistent improvement in this ratio suggests that Core & Main Inc has enhanced its operational efficiency and effectiveness in managing its current assets and liabilities to support its revenue generation. Overall, the increasing trend in the working capital turnover ratio reflects positively on Core & Main Inc's financial performance and ability to generate sales relative to its working capital investment.