Core & Main Inc (CNM)
Cash conversion cycle
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.90 | 65.04 | 68.23 |
| Days of sales outstanding (DSO) | days | 53.64 | 52.93 | 65.77 |
| Number of days of payables | days | 30.86 | 29.75 | 48.46 |
| Cash conversion cycle | days | 69.68 | 88.22 | 85.54 |
January 28, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.90 + 53.64 – 30.86
= 69.68
The cash conversion cycle of Core & Main Inc has shown some fluctuations over the past three years.
As of January 28, 2024, the cash conversion cycle improved significantly to 69.68 days compared to 88.22 days on January 29, 2023, and 85.54 days on January 30, 2022. This indicates that Core & Main Inc has become more efficient in managing its cash flows and working capital.
A decreasing cash conversion cycle suggests that the company is taking less time to convert its investments in raw materials into cash from sales, which is a positive sign of operational efficiency. This improvement can result from better inventory management, faster collections from customers, or elongated payment periods to suppliers.
Overall, the trend in Core & Main Inc's cash conversion cycle indicates a positive direction in terms of cash management and operational efficiency over the past three years.