GMS Inc (GMS)
Fixed asset turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,503,660 | 5,330,540 | 4,635,040 | 3,298,910 | 3,241,400 |
| Property, plant and equipment | US$ in thousands | 260,720 | 230,205 | 214,662 | 186,604 | 305,467 |
| Fixed asset turnover | 21.11 | 23.16 | 21.59 | 17.68 | 10.61 |
April 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,503,660K ÷ $260,720K
= 21.11
The fixed asset turnover ratio for GMS Inc has shown a fluctuating trend over the past five years. The ratio was highest in April 2023 at 23.16 and lowest in April 2020 at 10.61. This ratio measures how effectively the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.
The declining trend from 2023 to 2020 may indicate either a decrease in sales relative to fixed assets or an increase in the value of fixed assets that are not being utilized effectively. The significant increase in 2023 followed by a decrease in 2024 suggests some variability in asset utilization or sales performance. Overall, it would be important for GMS Inc to further investigate the factors contributing to these fluctuations in fixed asset turnover and take appropriate actions to improve efficiency in utilizing its fixed assets for revenue generation.
Peer comparison
Apr 30, 2024