Core & Main Inc (CNM)
Financial leverage ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,870,000 | 5,069,000 | 5,069,000 | 4,909,000 | 4,909,000 |
| Total stockholders’ equity | US$ in thousands | 1,698,000 | 1,451,000 | 1,451,000 | 1,747,000 | 1,747,000 |
| Financial leverage ratio | 3.46 | 3.49 | 3.49 | 2.81 | 2.81 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,870,000K ÷ $1,698,000K
= 3.46
The financial leverage ratio for Core & Main Inc has shown a gradual increase over the analyzed period, starting at 2.81 in January 2023 and peaking at 3.49 in January 2024. Subsequently, there was a slight decrease to 3.46 by January 2025. This indicates that the company has been relying more on debt financing compared to equity, which may pose higher financial risk. It is important for stakeholders to closely monitor this ratio to ensure the company maintains a healthy balance between debt and equity in its capital structure.