Core & Main Inc (CNM)
Working capital 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 | |||
| Total current assets | US$ in thousands | 1,773,000 | 2,171,000 | 2,182,000 | 2,166,000 | 2,211,000 | 2,455,000 | 2,461,000 | 2,202,000 | 1,767,000 | 1,696,900 | 1,508,300 |
| Total current liabilities | US$ in thousands | 774,000 | 921,000 | 842,000 | 798,000 | 726,000 | 987,000 | 1,079,000 | 1,066,000 | 839,000 | 842,600 | 744,800 |
| Working capital turnover | 6.63 | 5.25 | 4.89 | 4.79 | 4.43 | 4.40 | 4.38 | 4.82 |
January 28, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,621,000K ÷ ($1,773,000K – $774,000K)
= 6.63
The working capital turnover of Core & Main Inc has been fluctuating over the reported periods. It started at 4.82 in August 2021, then increased to 4.40 in October 2022, and has been generally rising since then. The highest working capital turnover was observed at 6.63 in January 2024, indicating that for every dollar of working capital, the company generated $6.63 of sales revenue during that period.
The upward trend in working capital turnover can suggest that the company is becoming more efficient in utilizing its working capital to generate sales. A higher working capital turnover generally indicates better liquidity management and more effective utilization of resources. However, the ratio should be interpreted in conjunction with other financial metrics to provide a comprehensive analysis of the company's operational efficiency and financial health.