GMS Inc (GMS)
Inventory turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,019,080 | 4,787,360 | 4,183,820 | 3,082,160 | 3,116,700 |
| Inventory | US$ in thousands | 580,830 | 575,495 | 550,953 | 357,054 | 299,815 |
| Inventory turnover | 8.64 | 8.32 | 7.59 | 8.63 | 10.40 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,019,080K ÷ $580,830K
= 8.64
The inventory turnover for GMS Inc has shown some fluctuations over the past five years. In the financial year ending April 30, 2024, the inventory turnover ratio was 8.64, which indicates that the company converted its inventory into sales approximately 8.64 times during the year. This figure has slightly increased compared to the previous year, where it was 8.32.
Looking further back, the inventory turnover ratio was 7.59 in April 30, 2022, 8.63 in April 30, 2021, and 10.40 in April 30, 2020. A decreasing trend in inventory turnover from 10.40 to 7.59 was observed over the three years leading up to 2022, followed by a fluctuating pattern in the subsequent years.
Overall, the inventory turnover ratio for GMS Inc has shown variability over the years, with some years exhibiting stronger inventory management efficiency than others. A stable or increasing trend in inventory turnover is generally preferred as it indicates faster movement of goods and potentially better liquidity and profitability for the company. Further analysis of the company's operations and industry trends may provide insights into the factors driving these fluctuations in inventory turnover.
Peer comparison
Apr 30, 2024