Core & Main Inc (CNM)
Debt-to-equity 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-equity ratio | 1.28 | 0.81 | 0.92 | 0.96 | 0.83 | 0.90 | 1.03 | 1.05 | 1.10 | 1.19 | 1.36 |
January 28, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,863,000K ÷ $1,451,000K
= 1.28
Core & Main Inc's debt-to-equity ratio has shown some fluctuations over the past few quarters. As of January 28, 2024, the ratio stands at 1.28, indicating that the company has $1.28 in debt for every $1 of equity. This signifies a relatively high level of leverage compared to equity in the capital structure.
The trend over the past year shows some variability, with the ratio ranging from a low of 0.81 in October 2023 to a high of 1.36 in August 2021. The company experienced a gradual increase in the ratio from the beginning of 2022 through early 2024, potentially signaling a growing reliance on debt to finance operations or investments.
It is important for stakeholders to monitor this ratio closely as higher levels of debt relative to equity could indicate increased financial risk and potential challenges in meeting debt obligations. It may also point to a need for Core & Main Inc to reassess its capital structure and financing strategies to maintain a healthy balance between debt and equity.