Core & Main Inc (CNM)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.61% | 27.13% | 27.46% | 26.99% | 27.26% |
| Operating profit margin | 9.66% | 11.04% | 11.18% | 11.65% | 11.77% |
| Pretax margin | 7.75% | 9.83% | 7.54% | 10.66% | 7.50% |
| Net profit margin | 5.52% | 5.54% | 5.60% | 8.74% | 5.56% |
Core & Main Inc's profitability ratios have shown some fluctuations over the past few years.
The Gross Profit Margin, which indicates the efficiency of the company in generating profit from its revenue after accounting for the cost of goods sold, has ranged between 26.61% and 27.46% during the period under consideration. This suggests that Core & Main Inc has been able to maintain a consistent level of profitability in relation to its sales revenue.
The Operating Profit Margin, which reflects the company's ability to control its operating expenses in relation to its revenue, has ranged from 9.66% to 11.77%. The decline in this margin over the years may indicate that Core & Main Inc has faced challenges in managing its operating costs effectively.
The Pretax Margin, representing the company's profitability before taxes, has fluctuated between 7.50% and 10.66%. This ratio gives an indication of Core & Main Inc's ability to generate profit before accounting for tax obligations, and the fluctuations may suggest changing business conditions or operational efficiency.
The Net Profit Margin, which reflects the company's bottom-line profitability after all expenses have been deducted, has ranged from 5.52% to 8.74%. This ratio shows the actual profitability of Core & Main Inc after all expenses are taken into account, and the relatively stable margins indicate consistency in the company's net profitability.
Overall, Core & Main Inc has maintained reasonable profitability margins over the period, although there have been some fluctuations. It is important for the company to continue monitoring and managing its costs effectively to ensure sustained profitability in the future.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.25% | 14.60% | 14.60% | 15.79% | 15.79% |
| Return on assets (ROA) | 7.00% | 7.32% | 7.32% | 11.84% | 7.46% |
| Return on total capital | 42.34% | 51.00% | 17.50% | 44.71% | 17.55% |
| Return on equity (ROE) | 24.20% | 25.57% | 25.57% | 33.26% | 20.95% |
Core & Main Inc's profitability ratios show a mixed performance over the period analyzed.
- Operating return on assets (Operating ROA): The company's operating ROA decreased from 15.79% in January 2023 to 12.25% in January 2025. This indicates a decline in the company's profitability in generating operating income from its assets.
- Return on assets (ROA): The ROA fluctuated, with a peak of 11.84% in January 2023 and a low of 7.00% in January 2025. The downward trend suggests a decrease in the company's overall profitability in relation to its total assets.
- Return on total capital: This ratio also varied significantly, ranging from 17.55% in January 2023 to 42.34% in January 2025. The substantial increase in January 2024 indicates the company's ability to generate returns on its total capital, albeit with fluctuations.
- Return on equity (ROE): The ROE declined from 33.26% in January 2023 to 24.20% in January 2025. This indicates a decreasing trend in the company's ability to generate returns for its shareholders over the period.
Overall, Core & Main Inc's profitability ratios show some inconsistency, with fluctuations in performance across the different metrics. This suggests the company may need to focus on improving its operational efficiency and maximizing returns on its assets and capital to enhance overall profitability in the future.