Core & Main Inc (CNM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 740,000 | 748,000 | 765,000 | 776,000 | 775,000 | 760,000 | 673,000 | 536,000 | |||
| Total assets | US$ in thousands | 5,069,000 | 5,067,000 | 5,039,000 | 4,929,000 | 4,909,000 | 5,190,000 | 5,148,000 | 4,894,000 | 4,434,000 | 4,380,800 | 4,053,300 |
| Operating ROA | 14.60% | 14.76% | 15.18% | 15.74% | 15.79% | 14.64% | 13.07% | 10.95% |
January 28, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $740,000K ÷ $5,069,000K
= 14.60%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency of Core & Main Inc in generating earnings from its operational assets. The trend analysis shows that Core & Main Inc's Operating ROA has been relatively stable over the past several quarters, ranging from 10.95% in May 2022 to a peak of 15.79% in January 2023.
Overall, Core & Main Inc's Operating ROA has averaged at a healthy level of around 14-15% during the period under review, indicating that the company is effectively utilizing its assets to generate operating income. The consistent performance in this ratio suggests that the company is efficiently managing its operations and generating profits in relation to its asset base.
It is noteworthy that there was a slight decrease in Operating ROA from January 2023 to October 2023, followed by a slight recovery in the most recent quarter to 14.60% in January 2024. This variation may be influenced by changes in the company's profitability and asset utilization efficiency during these periods.
In conclusion, Core & Main Inc's Operating ROA performance demonstrates the company's ability to generate earnings from its operational assets, maintain operational efficiency, and potentially create value for its stakeholders over the specified period.