Core & Main Inc (CNM)
Return on equity (ROE)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 371,000 | 366,000 | 166,000 |
| Total stockholders’ equity | US$ in thousands | 1,451,000 | 1,747,000 | 1,325,000 |
| ROE | 25.57% | 20.95% | 12.53% |
January 28, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $371,000K ÷ $1,451,000K
= 25.57%
Core & Main Inc's return on equity (ROE) has shown a positive trend over the three-year period. The ROE has steadily increased from 12.53% in January 2022 to 20.95% in January 2023, and further improved to 25.57% in January 2024. This indicates that the company has been utilizing its equity more efficiently to generate profits for its shareholders. A rising trend in ROE usually reflects the company's ability to generate higher profits relative to the equity invested by shareholders, signifying improved financial performance and operational efficiency. The consistent improvement in ROE demonstrates Core & Main Inc's effective management of assets and equity to drive profitability and value creation.