GMS Inc (GMS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,019,090 | 4,897,680 | 4,857,540 | 4,839,880 | 4,787,370 | 4,770,820 | 4,697,040 | 4,458,900 | 4,183,815 | 3,886,630 | 3,551,080 | 3,277,232 | 3,082,163 | 2,284,168 | 2,295,130 | 2,339,371 | 2,384,800 | 2,524,034 | 1,996,753 | 1,761,567 |
| Inventory | US$ in thousands | 580,830 | 582,613 | 559,449 | 582,679 | 575,495 | 586,651 | 576,388 | 577,938 | 550,953 | 585,351 | 552,180 | 470,249 | 357,054 | 327,725 | 302,357 | 287,266 | 299,815 | 296,117 | 293,465 | 295,553 |
| Inventory turnover | 8.64 | 8.41 | 8.68 | 8.31 | 8.32 | 8.13 | 8.15 | 7.72 | 7.59 | 6.64 | 6.43 | 6.97 | 8.63 | 6.97 | 7.59 | 8.14 | 7.95 | 8.52 | 6.80 | 5.96 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,019,090K ÷ $580,830K
= 8.64
Over the past five years, GMS Inc's inventory turnover ratio has shown a consistent trend of improvement. The inventory turnover ratio measures the efficiency with which the company manages its inventory by indicating how many times during a period it sells and replaces its average inventory.
From October 2019 to April 2024, GMS Inc's inventory turnover has generally trended upwards, indicating a more efficient management of inventory. The ratio has ranged from a low of 5.96 to a high of 8.68 during this period. This suggests that the company has been more effective in selling and replenishing its inventory, which can lead to reduced holding costs and improved cash flows.
The highest inventory turnover ratio of 8.68 was recorded in October 2023, indicating that GMS Inc was able to turn over its inventory approximately 8.68 times during that period. This could be attributed to effective inventory management practices, such as better demand forecasting, streamlined supply chain processes, and optimized inventory levels.
Overall, the increasing trend in inventory turnover reflects positively on GMS Inc's operational efficiency and ability to manage its inventory effectively to meet customer demand while minimizing excess inventory levels. However, it is important for the company to continue monitoring and improving its inventory turnover to ensure optimal performance and profitability.
Peer comparison
Apr 30, 2024
Apr 30, 2024