Core & Main Inc (CNM)
Cash ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,000 | 1,000 | 1,000 | 177,000 | 177,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 866,000 | 774,000 | 774,000 | 726,000 | 726,000 |
| Cash ratio | 0.01 | 0.00 | 0.00 | 0.24 | 0.24 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,000K
+ $—K)
÷ $866,000K
= 0.01
Core & Main Inc's cash ratio has shown a downward trend from 0.24 in January 2023 to 0.01 in January 2025. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations. In this case, the decreasing trend in the cash ratio may indicate that Core & Main Inc's liquidity position has weakened over the analyzed period. With a cash ratio of 0.01 in January 2025, the company may have a limited ability to cover its short-term liabilities solely with its cash reserves. Further analysis of the company's overall liquidity position and cash management practices may be necessary to understand the reasons behind the declining cash ratio and assess the potential risks associated with the company's liquidity position.