Core & Main Inc (CNM)
Liquidity ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Current ratio | 2.34 | 2.29 | 2.29 | 3.05 | 3.05 |
| Quick ratio | 0.01 | 0.00 | 1.26 | 0.24 | 1.56 |
| Cash ratio | 0.01 | 0.00 | 0.00 | 0.24 | 0.24 |
Core & Main Inc's liquidity ratios show a mix of strengths and areas that may require attention.
- The current ratio, which indicates the company's ability to meet short-term obligations with its current assets, has remained relatively stable around 3.05 in January 2023 and January 2024 but decreased to 2.29 in January 2025. While a current ratio above 1.0 generally indicates good liquidity, the downward trend should be monitored for potential liquidity risks.
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has fluctuated significantly. It was relatively strong at 1.56 in January 2023 but decreased sharply to 0.24 in the same month of 2023, and stayed low in the following years. This suggests a potential dependence on inventory for liquidity, which may not always be readily convertible to cash.
- The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, shows a similar trend to the quick ratio. While it was at an acceptable level of 0.24 in January 2023, it dropped to 0.00 by January 2024 and remained low at 0.01 in January 2025. This indicates a need to closely monitor the company's cash position to ensure it can meet its short-term obligations.
Overall, while Core & Main Inc has maintained decent liquidity levels, the declining trend in quick and cash ratios highlights the importance of closely managing working capital and ensuring that the company can readily meet its short-term financial commitments.
Additional liquidity measure
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 60.69 | 57.25 | 69.68 | 78.70 | 88.22 |
Core & Main Inc's cash conversion cycle has exhibited a declining trend over the past few years, indicating improvements in the efficiency of its working capital management. In January 2023, the cash conversion cycle stood at 88.22 days, then decreased to 78.70 days by January 31, 2023. Subsequently, the cycle continued to decrease to 69.68 days by January 28, 2024, further reaching 57.25 days by January 31, 2024. However, there was a slight increase to 60.69 days by January 31, 2025. Overall, the decreasing trend in the cash conversion cycle suggests that Core & Main Inc has been managing its cash, inventory, and receivables more efficiently over the years.