GMS Inc (GMS)
Fixed asset turnover
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,503,050 | 5,394,120 | 5,370,190 | 5,380,100 | 5,329,640 | 5,314,190 | 5,233,030 | 4,952,480 | 4,634,950 | 4,278,503 | 3,876,060 | 3,538,350 | 3,298,880 | 3,137,527 | 3,147,690 | 3,196,755 | 3,241,333 | 3,250,632 | 3,213,184 | 3,185,086 |
| Property, plant and equipment | US$ in thousands | 260,720 | 239,747 | 237,615 | 240,972 | 230,205 | 218,350 | 214,981 | 216,276 | 214,662 | 217,548 | 202,935 | 201,724 | 186,604 | 305,144 | 300,144 | 299,661 | 305,467 | 306,472 | 292,136 | 287,535 |
| Fixed asset turnover | 21.11 | 22.50 | 22.60 | 22.33 | 23.15 | 24.34 | 24.34 | 22.90 | 21.59 | 19.67 | 19.10 | 17.54 | 17.68 | 10.28 | 10.49 | 10.67 | 10.61 | 10.61 | 11.00 | 11.08 |
April 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,503,050K ÷ $260,720K
= 21.11
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Based on the data provided for GMS Inc, we observe fluctuating trends in the fixed asset turnover ratio over the past few years. The ratio ranged from a low of 10.28 in April 2021 to a high of 24.34 in January 2023. This indicates significant variability in the company's efficiency in utilizing its fixed assets to generate sales revenue.
From a broader perspective, the fixed asset turnover ratio for GMS Inc has generally shown an increasing trend over the years, with occasional fluctuations. This may suggest improvements in the company's operational efficiency and asset utilization. However, it is essential to further analyze the underlying reasons for the fluctuations and assess whether they are sustainable or temporary in nature.
Overall, the analysis of GMS Inc's fixed asset turnover ratio indicates varying levels of efficiency in utilizing fixed assets to generate sales revenue over the given time period. Further investigation into the company's operating performance and asset management strategies may provide insights into the factors driving these fluctuations.
Peer comparison
Apr 30, 2024