Core & Main Inc (CNM)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.21 | 64.80 | 67.57 | 68.07 | 52.15 | 49.69 | 50.65 | 52.40 | 63.74 | 65.13 | 79.92 | 74.16 | 69.33 | 73.77 | 75.65 | 87.32 | 83.41 | 90.91 | 72.85 | 71.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 51.37 | — | 62.63 | — | 73.17 | — | — | 51.00 | — | 67.87 | — | 71.74 | — | — | 62.08 |
| Number of days of payables | days | — | — | — | — | — | 32.69 | — | 41.08 | — | 43.69 | — | — | 31.72 | — | 46.19 | — | 67.40 | — | — | 51.10 |
| Cash conversion cycle | days | 60.21 | 64.80 | 67.57 | 68.07 | 52.15 | 68.37 | 50.65 | 73.95 | 63.74 | 94.61 | 79.92 | 74.16 | 88.61 | 73.77 | 97.33 | 87.32 | 87.75 | 90.91 | 72.85 | 82.93 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.21 + — – —
= 60.21
The cash conversion cycle of Core & Main Inc shows fluctuations over the reported periods. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown variability ranging from 50.65 days to 97.33 days.
Analyzing the trend, the company experienced an elongated cash conversion cycle in October 2022, taking 97.33 days, indicating potential inefficiencies in managing inventory, accounts receivable, and payable. However, this was followed by a significant improvement to 63.74 days in July 2023, suggesting enhanced working capital management.
The company sustained lower cash conversion cycle durations in the later periods, with the cycle ranging from 52.15 days in January 2024 to 60.21 days in January 2025. This suggests that Core & Main Inc might have streamlined its operations, improved inventory turnover, and optimized its accounts receivable and payable processes to enhance cash flow efficiency.
Overall, a lower cash conversion cycle denotes that the company is efficiently managing its resources and converting them into cash quickly, indicating effective working capital management. However, occasional fluctuations in the cycle should be closely monitored to ensure sustainable and efficient operations.