Core & Main Inc (CNM)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.56 | 0.45 | 0.48 | 0.49 | 0.45 | 0.47 | 0.51 | 0.51 | 0.52 | 0.54 | 0.58 |
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 for Core & Main Inc has shown some fluctuations over the past 11 quarters. The ratio ranged from a low of 0.45 in Oct 29, 2023, to a high of 0.58 in Aug 1, 2021. This ratio measures the proportion of the company's capital that is financed by debt, with values closer to 1 indicating higher reliance on debt financing.
Overall, the trend in the debt-to-capital ratio seems to have increased slightly over the recent quarters, with the ratio moving from 0.45 in Oct 29, 2023, to 0.56 in Jan 28, 2024. This increase may suggest that Core & Main Inc has taken on more debt relative to its capital base during this period.
It is important for investors and stakeholders to monitor the debt-to-capital ratio, as a high ratio can indicate higher financial risk and leverage for the company. However, a low ratio may suggest underutilization of debt financing and potential lost opportunities for growth. Further analysis of the company's overall financial health and future growth prospects would be necessary to fully assess the implications of the changes in the debt-to-capital ratio for Core & Main Inc.