Core & Main Inc (CNM)
Quick ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,000 | 1,000 | 1,000 | 177,000 | 177,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | 973,000 | — | 955,000 |
| Total current liabilities | US$ in thousands | 866,000 | 774,000 | 774,000 | 726,000 | 726,000 |
| Quick ratio | 0.01 | 0.00 | 1.26 | 0.24 | 1.56 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,000K
+ $—K
+ $—K)
÷ $866,000K
= 0.01
Core & Main Inc's quick ratio has shown significant fluctuations over the years based on the provided data. In January 2023, the quick ratio was 1.56, indicating that the company had a strong ability to meet its short-term obligations with its most liquid assets. However, by January 2024, the quick ratio decreased substantially to 0.24, suggesting potential liquidity concerns as the company may struggle to cover its short-term liabilities with its quick assets.
During January 2024, the quick ratio improved to 1.26, indicating a better ability to meet short-term obligations compared to the previous period. However, in January 2025, the quick ratio dropped drastically to 0.00, signifying that the company may have difficulty in meeting its immediate financial obligations solely based on its quick assets. This scenario may raise concerns about the company's liquidity and ability to manage short-term financial commitments effectively.
The quick ratio is a key indicator of a company's short-term liquidity position, and the fluctuations observed in Core & Main Inc's quick ratio highlight the importance of regularly monitoring and managing liquidity to ensure the company's financial health and stability.