Core & Main Inc (CNM)
Cash conversion cycle
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.69 | 57.25 | 46.90 | 78.70 | 65.04 |
| Days of sales outstanding (DSO) | days | — | — | 53.64 | — | 52.93 |
| Number of days of payables | days | — | — | 30.86 | — | 29.75 |
| Cash conversion cycle | days | 60.69 | 57.25 | 69.68 | 78.70 | 88.22 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.69 + — – —
= 60.69
Core & Main Inc's cash conversion cycle has shown a decreasing trend over the years based on the provided data. Starting at 88.22 days on January 29, 2023, the company's cash conversion cycle improved to 78.70 days by January 31, 2023. Further efficiencies were evident as the cycle decreased to 69.68 days on January 28, 2024, and then to 57.25 days by January 31, 2024. However, there was a slight increase to 60.69 days by January 31, 2025.
Overall, the company has been effectively managing its cash conversion cycle, indicating that it is taking less time to convert its investments in inventory into cash. This trend suggests improved liquidity and operational efficiency for Core & Main Inc.