Core & Main Inc (CNM)
Quick ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,000 | 101,000 | 20,000 | 1,000 | 177,000 | 0 | 0 | 1,000 | 1,000 | 4,900 | 66,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 973,000 | 1,215,000 | 1,231,000 | 1,098,000 | 955,000 | 1,273,000 | 1,264,000 | 1,113,000 | 884,000 | 946,100 | 832,900 |
| Total current liabilities | US$ in thousands | 774,000 | 921,000 | 842,000 | 798,000 | 726,000 | 987,000 | 1,079,000 | 1,066,000 | 839,000 | 842,600 | 744,800 |
| Quick ratio | 1.26 | 1.43 | 1.49 | 1.38 | 1.56 | 1.29 | 1.17 | 1.05 | 1.05 | 1.13 | 1.21 |
January 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,000K
+ $—K
+ $973,000K)
÷ $774,000K
= 1.26
The quick ratio of Core & Main Inc has fluctuated over the past several periods, ranging from a low of 1.05 to a high of 1.56. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets and provides insight into its liquidity position. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
In general, the trend of the quick ratio for Core & Main Inc shows fluctuations but with a tendency to stay above 1, which is generally considered a positive sign. A quick ratio above 1 means that the company can meet its short-term obligations without having to rely heavily on selling inventory or other less liquid assets.
While a quick ratio of 1.26 as of Jan 28, 2024, is considered acceptable, it is slightly lower compared to the higher ratios seen in previous periods, such as 1.49 in Jul 30, 2023, and 1.56 in Jan 29, 2023. This may indicate a slight decrease in the company's liquidity position or a shift in its asset composition.
Overall, the quick ratio analysis suggests that Core & Main Inc has generally maintained a healthy liquidity position over the periods analyzed, although there have been some fluctuations. It is important for investors and stakeholders to continue monitoring the quick ratio along with other financial metrics to assess the company's overall financial health and potential challenges in meeting short-term obligations.