Core & Main Inc (CNM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,451,000 | 1,747,000 | 1,325,000 |
| Debt-to-capital ratio | 0.56 | 0.45 | 0.52 |
January 28, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,863,000K ÷ ($1,863,000K + $1,451,000K)
= 0.56
The debt-to-capital ratio of Core & Main Inc has fluctuated over the past three years. As of January 28, 2024, the ratio stands at 0.56, indicating that 56% of the company's capital structure is financed through debt. This represents an increase from the previous year where the ratio was 0.45. In comparison to two years ago, when the ratio was 0.52, there has been a notable increase in the level of debt relative to the total capital employed by the company. The rising trend in the debt-to-capital ratio suggests that Core & Main Inc has been relying more heavily on debt financing, which may indicate a strategic shift in its capital structure or investment decisions. It is important for stakeholders to monitor this ratio closely to assess the company's leverage and financial risk.