Core & Main Inc (CNM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,069,000 | 5,067,000 | 5,039,000 | 4,929,000 | 4,909,000 | 5,190,000 | 5,148,000 | 4,894,000 |
| 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 |
| Financial leverage ratio | 3.49 | 2.86 | 2.97 | 3.03 | 2.81 | 3.05 | 3.32 | 3.41 |
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 few quarters, ranging from a low of 2.81 to a high of 3.78. This ratio indicates the proportion of the company's total assets that are financed by debt rather than equity.
A higher financial leverage ratio suggests that the company relies more on debt to finance its operations and growth, which can amplify both returns and risks. On the other hand, a lower ratio indicates a lower level of debt relative to equity, potentially signaling a more conservative financial structure.
In the case of Core & Main Inc, the trend in the financial leverage ratio shows some variability, with peaks in the range of 3.49 to 3.78 and troughs around 2.81 to 2.97. This fluctuation in the ratio may reflect changes in the company's capital structure, including debt levels and equity financing decisions.
For a more in-depth analysis, it would be beneficial to compare the financial leverage ratio with industry benchmarks and competitors to assess Core & Main Inc's relative leverage position and evaluate the implications for the company's financial risk and performance.