Core & Main Inc (CNM)
Return on total capital
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 580,000 | 560,000 | 315,000 |
| Long-term debt | US$ in thousands | 1,863,000 | 1,444,000 | 1,456,000 |
| Total stockholders’ equity | US$ in thousands | 1,451,000 | 1,747,000 | 1,325,000 |
| Return on total capital | 17.50% | 17.55% | 11.33% |
January 28, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $580,000K ÷ ($1,863,000K + $1,451,000K)
= 17.50%
The return on total capital for Core & Main Inc has been relatively consistent over the past three years. In January 2024, the return on total capital was 17.50%, slightly lower compared to the previous year where it was 17.55%. However, both figures are significantly higher than the return on total capital reported in January 2022, which was 11.33%.
This indicates that Core & Main Inc has been able to effectively utilize its total capital to generate returns for its stakeholders. The stable and relatively high return on total capital suggests that the company is efficiently using its capital resources to generate profits. Investors and stakeholders may view this positively as it indicates the company's ability to generate returns on the total capital employed in its operations.