Core & Main Inc (CNM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 580,000 | 571,000 | 567,000 | 565,000 | 560,000 | 524,000 | 458,000 | 355,000 | |||
| Long-term debt | US$ in thousands | 1,863,000 | 1,436,000 | 1,554,000 | 1,571,000 | 1,444,000 | 1,537,000 | 1,592,000 | 1,510,000 | 1,456,000 | 1,459,000 | 1,462,000 |
| Total stockholders’ equity | US$ in thousands | 1,451,000 | 1,769,000 | 1,695,000 | 1,628,000 | 1,747,000 | 1,704,000 | 1,550,000 | 1,436,000 | 1,325,000 | 1,223,300 | 1,071,900 |
| Return on total capital | 17.50% | 17.82% | 17.45% | 17.66% | 17.55% | 16.17% | 14.58% | 12.05% |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $580,000K ÷ ($1,863,000K + $1,451,000K)
= 17.50%
Core & Main Inc's return on total capital has shown a consistent upward trend over the past several quarters, indicating efficient utilization of both debt and equity to generate profits. The company's return on total capital stood at 17.50% in January 28, 2024, a slight decrease from the previous quarter but still relatively strong. This performance is in line with the company's previous quarters, with returns ranging between 14.58% to 17.82% over the past year.
The increasing trend in return on total capital suggests that Core & Main Inc is effectively managing its capital structure and generating higher returns on the total capital employed in its operations. This could be attributed to improved operational efficiency, effective cost management, and strategic allocation of resources.
Overall, Core & Main Inc's consistent and relatively high return on total capital signifies a healthy financial performance and indicates the company's ability to generate value for its shareholders through efficient capital utilization.