GMS Inc (GMS)
Payables turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,791,710 | 3,726,810 | 3,603,310 | 3,146,600 | 2,236,120 |
| Payables | US$ in thousands | 431,494 | 420,237 | 377,003 | 367,315 | 322,965 |
| Payables turnover | 8.79 | 8.87 | 9.56 | 8.57 | 6.92 |
April 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,791,710K ÷ $431,494K
= 8.79
The payables turnover ratio for GMS Inc. demonstrates a generally increasing trend over the analyzed period from April 30, 2021 to April 30, 2025. Specifically, the ratio rose from 6.92 in 2021 to 8.57 in 2022, indicating an improvement in the company's ability to settle its accounts payable more efficiently. The ratio further increased to 9.56 in 2023, reaching its peak within the analyzed timeframe, which suggests a significant acceleration in payment activity relative to the company's cost of goods sold or purchases.
Subsequently, the ratio experienced a slight decline to 8.87 in 2024 and further decreased marginally to 8.79 in 2025. Despite this slight decrease, the ratio remained substantially higher than the 2021 level, reflecting a sustained improvement in payables management compared to the initial period.
Overall, the upward trend from 2021 through 2023 indicates a progressive strengthening of GMS Inc.'s efficiency in managing its trade payables. The modest decline thereafter may point to a normalization of payment cycles or strategic alterations in payment policies, but the ratios remain elevated relative to 2021, signaling a generally positive and improving payables turnover position.
Peer comparison
Apr 30, 2025