Core & Main Inc (CNM)
Profitability ratios
Return on sales
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | |
|---|---|---|---|
| Gross profit margin | 27.46% | 27.26% | 26.09% |
| Operating profit margin | 11.18% | 11.77% | 8.66% |
| Pretax margin | 7.54% | 7.50% | 4.42% |
| Net profit margin | 5.60% | 5.56% | 3.38% |
Core & Main Inc's profitability ratios have shown improvement over the past three fiscal years.
Firstly, the gross profit margin has shown a steady increase from 26.09% in January 2022 to 27.46% in January 2024. This indicates that the company has been able to increase its efficiency in managing direct production costs and markup on products sold.
Secondly, the operating profit margin has fluctuated slightly, with a peak of 11.77% in January 2023, followed by a decrease to 11.18% in January 2024. This margin reflects the company's ability to control operating expenses in relation to revenue generation.
Thirdly, the pretax margin has shown an upward trend, increasing from 4.42% in January 2022 to 7.54% in January 2024. This indicates that the company has been able to improve its overall profitability before accounting for taxes.
Lastly, the net profit margin has also shown a consistent increase over the three-year period, rising from 3.38% in January 2022 to 5.60% in January 2024. This suggests that Core & Main Inc has been able to effectively manage its expenses and generate higher profits for its shareholders.
Overall, Core & Main Inc's profitability ratios demonstrate a positive trend, signaling improved operational efficiency and financial performance over the past three years.
Return on investment
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.60% | 15.79% | 9.59% |
| Return on assets (ROA) | 7.32% | 7.46% | 3.74% |
| Return on total capital | 17.50% | 17.55% | 11.33% |
| Return on equity (ROE) | 25.57% | 20.95% | 12.53% |
Core & Main Inc has shown a consistent performance in terms of profitability ratios over the three years analyzed.
Operating return on assets (Operating ROA) has decreased from 15.79% in January 2023 to 14.60% in January 2024. This ratio measures how effectively the company is generating profits from its assets solely related to operations. Despite the slight decrease, Core & Main Inc still demonstrates strong operational efficiency.
Return on assets (ROA) has also slightly decreased from 7.46% in January 2023 to 7.32% in January 2024. ROA indicates the company's overall efficiency in generating profits from its total assets. Although there has been a small decline, Core & Main Inc continues to exhibit a stable performance in utilizing its assets effectively.
Return on total capital has remained relatively stable, slightly decreasing from 17.55% in January 2023 to 17.50% in January 2024. This ratio reflects the company's ability to generate profits from both debt and equity capital invested in the business. Core & Main Inc's consistency in maintaining a high return on total capital indicates a successful utilization of both debt and equity to drive profitability.
Return on equity (ROE) has shown significant improvement, increasing from 20.95% in January 2023 to 25.57% in January 2024. ROE measures the company's ability to generate profits from shareholders' equity. Core & Main Inc's notable increase in ROE reflects a higher return to equity investors, implying efficient management of shareholder investments.
Overall, Core & Main Inc's profitability ratios demonstrate a strong operational performance and effective utilization of assets and capital to drive profitability over the years analyzed.