Core & Main Inc (CNM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.34 | 2.14 | 2.29 | 2.14 | 2.29 | 2.29 | 2.36 | 2.36 | 2.59 | 2.59 | 2.71 | 3.05 | 3.05 | 2.49 | 2.49 | 2.28 | 2.07 | 2.07 | 2.11 | 2.11 |
| Quick ratio | 0.01 | 0.01 | 0.01 | 0.03 | 0.00 | 1.26 | 0.11 | 1.43 | 0.02 | 1.49 | 0.00 | 0.24 | 1.56 | -0.17 | 1.29 | -0.15 | 1.05 | 0.00 | 0.00 | 1.05 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.03 | 0.00 | 0.00 | 0.11 | 0.11 | 0.02 | 0.02 | 0.00 | 0.24 | 0.24 | -0.17 | 0.00 | -0.15 | 0.00 | 0.00 | 0.00 | 0.00 |
Core & Main Inc's liquidity ratios indicate a generally stable liquidity position over the reported periods. The current ratio demonstrates the company's ability to meet its short-term obligations with its current assets. The current ratio ranged from 2.11 to 3.05 over the periods, with a peak in January 29, 2023. This indicates that Core & Main Inc had more than enough current assets to cover its short-term liabilities during most of the periods.
On the other hand, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, varied more widely. It ranged from -0.17 to 1.56, with negative values in some periods. Negative quick ratios can indicate potential issues with liquidity if inventory cannot be easily converted to cash. The cash ratio, which is the most conservative measure of liquidity as it includes only cash and cash equivalents, also showed fluctuations but generally improved over time.
Overall, Core & Main Inc's liquidity ratios suggest that the company was generally able to meet its short-term obligations with its current assets, although fluctuations in quick and cash ratios should be monitored for any potential liquidity concerns.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Core & Main Inc has shown variability over the reporting periods provided. The company's cash conversion cycle, which represents the time it takes to convert raw materials into cash flow from sales, ranged from a high of 97.33 days on October 30, 2022, to a low of 50.65 days on October 31, 2023.
A lower cash conversion cycle indicates that the company is more efficient in managing its working capital, as it takes less time to convert its investments in inventory back into cash. Conversely, a higher cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying payables.
It's worth noting that the company saw a significant improvement in its cash conversion cycle from July 31, 2023, when it decreased substantially to 63.74 days, indicating potential operational improvements. However, in the subsequent periods, the cycle has fluctuated within a certain range, showing some volatility in the company's working capital management.
Overall, Core & Main Inc should continue to monitor and optimize its cash conversion cycle to ensure efficient use of its working capital and maximize cash flow.