Core & Main Inc (CNM)
Financial leverage ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 5,069,000 | 4,909,000 | 4,434,000 |
| Total stockholders’ equity | US$ in thousands | 1,451,000 | 1,747,000 | 1,325,000 |
| Financial leverage ratio | 3.49 | 2.81 | 3.35 |
January 28, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,069,000K ÷ $1,451,000K
= 3.49
The financial leverage ratio of Core & Main Inc has fluctuated over the past three years, indicating changes in the company's debt levels relative to its equity. In January 2024, the financial leverage ratio stood at 3.49, reflecting an increase compared to the previous year. This increase suggests that the company may be relying more on debt to finance its operations, which could potentially increase financial risk.
Conversely, in January 2023, the financial leverage ratio was 2.81, indicating a lower level of debt relative to equity compared to the following year. This could imply a more conservative financial strategy during that period.
In January 2022, the financial leverage ratio was 3.35, falling between the ratios of the following two years. This suggests a moderate level of debt utilization relative to equity.
Overall, the fluctuation in Core & Main Inc's financial leverage ratio highlights potential shifts in the company's capital structure and financial risk profile over the analyzed period. It is important for stakeholders to closely monitor these changes to assess the company's financial health and stability.