Core & Main Inc (CNM)
Debt-to-assets ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,863,000 | 1,444,000 | 1,456,000 |
| Total assets | US$ in thousands | 5,069,000 | 4,909,000 | 4,434,000 |
| Debt-to-assets ratio | 0.37 | 0.29 | 0.33 |
January 28, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,863,000K ÷ $5,069,000K
= 0.37
The debt-to-assets ratio of Core & Main Inc has shown some fluctuation over the past three years. As of January 28, 2024, the ratio stands at 0.37, indicating that 37% of the company's assets are financed through debt. This represents an increase from the previous year where the ratio was 0.29.
Comparing this to January 30, 2022, where the ratio was 0.33, we can see a general trend of increasing leverage over the three-year period. A rising debt-to-assets ratio may suggest that the company is becoming more reliant on debt financing to support its operations and growth initiatives.
While a higher debt-to-assets ratio can potentially enhance returns for shareholders, it also increases the company's financial risk as a larger portion of its assets are funded by debt. It would be important for investors and stakeholders to monitor Core & Main's ability to manage its debt levels effectively and continue to generate sufficient cash flows to meet its obligations.