GMS Inc (GMS)
Payables 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 |
| Payables | US$ in thousands | 420,237 | 323,263 | 367,405 | 351,951 | 377,003 | 314,349 | 366,143 | 363,287 | 367,315 | 293,485 | 351,226 | 329,452 | 322,965 | 157,892 | 163,927 | 180,558 | 248,902 | 143,689 | 168,768 | 164,794 |
| Payables turnover | 11.94 | 15.15 | 13.22 | 13.75 | 12.70 | 15.18 | 12.83 | 12.27 | 11.39 | 13.24 | 10.11 | 9.95 | 9.54 | 14.47 | 14.00 | 12.96 | 9.58 | 17.57 | 11.83 | 10.69 |
April 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,019,090K ÷ $420,237K
= 11.94
The payables turnover ratio for GMS Inc has been fluctuating over the past few years, ranging from a low of 9.54 to a high of 17.57. This ratio measures how quickly a company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of efficient cash management.
From the data provided, it is observed that the payables turnover ratio has generally been above 10, which suggests that GMS Inc is efficient in managing its accounts payable and maintaining good relationships with its suppliers. However, the ratio has varied throughout the periods, indicating potential changes in payment terms or supplier relationships.
The trend in the payables turnover ratio over time can provide insights into the company's liquidity, operational efficiency, and working capital management. Further analysis would be required to understand the reasons behind the fluctuations in the payables turnover ratio and to assess the overall financial health of GMS Inc.
Peer comparison
Apr 30, 2024