GMS Inc (GMS)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.67 5.78 5.20 5.62 6.02 5.90 5.16 5.30 5.56 5.31 4.52 4.67 5.19 7.34 6.97 7.19 8.00 7.48 6.69 6.73
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
Working capital turnover 6.24 6.15 6.09 6.07 6.32 5.61 5.71 5.74 6.32 5.32 5.32 5.76 6.11 5.97 6.33 6.25 6.59 7.41 7.08 6.97

GMS Inc's activity ratios provide insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: GMS Inc's inventory turnover has been relatively stable over the periods, averaging around 8 times a year. This indicates that the company is efficiently selling through its inventory and restocking at a consistent pace.

2. Receivables turnover: GMS Inc's receivables turnover has shown some variability, but generally, the company collects its receivables about 5-6 times a year. A higher turnover suggests that the company is efficient in collecting payments from customers.

3. Payables turnover: The payables turnover for GMS Inc has fluctuated significantly. A higher turnover indicates that the company is paying its suppliers more frequently. The recent decrease in payables turnover may imply a change in payment terms or supplier relationships.

4. Working capital turnover: GMS Inc's working capital turnover has been relatively consistent, indicating the company is effectively utilizing its working capital to generate sales. The average turnover of around 6 times a year suggests that GMS Inc efficiently uses its current assets to support its operations.

Overall, GMS Inc's activity ratios reflect a generally efficient management of inventory, receivables, payables, and working capital, which is essential for maintaining a healthy and sustainable business operation. Understanding these ratios can help stakeholders assess the company's operational efficiency and overall financial health.

Average number of days

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
Days of inventory on hand (DOH) days 42.24 43.42 42.04 43.94 43.88 44.88 44.79 47.31 48.07 54.97 56.76 52.37 42.28 52.37 48.08 44.82 45.89 42.82 53.64 61.24
Days of sales outstanding (DSO) days 64.40 63.19 70.24 64.89 60.59 61.87 70.68 68.84 65.65 68.75 80.76 78.10 70.33 49.73 52.34 50.77 45.63 48.82 54.56 54.25
Number of days of payables days 30.56 24.09 27.61 26.54 28.74 24.05 28.45 29.74 32.04 27.56 36.10 36.69 38.25 25.23 26.07 28.17 38.10 20.78 30.85 34.15

Based on the activity ratios provided for GMS Inc over multiple periods, we can analyze the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH):
- The average number of days GMS Inc holds inventory has shown some fluctuations over the periods analyzed, ranging from a low of 42.04 days to a high of 61.24 days.
- Generally, lower DOH values indicate that GMS Inc is efficient in managing its inventory, with recent periods showing improvements in inventory turnover compared to the earlier periods.

2. Days of Sales Outstanding (DSO):
- The average number of days it takes for GMS Inc to collect its receivables has varied over time, with values ranging from 45.63 days to 80.76 days.
- A decreasing trend in DSO would suggest that the company is effectively managing its accounts receivable, though there are instances of higher DSO periods indicating potential challenges in collections.

3. Number of Days of Payables:
- GMS Inc's average number of days payable has also fluctuated, with values ranging from 20.78 days to 38.25 days.
- A longer period of days payable suggests that the company is effectively using trade credit from suppliers, but it may also indicate potential liquidity issues or strained supplier relationships in certain periods.

Overall, GMS Inc should continue monitoring and managing its activity ratios to ensure efficient operations, optimize working capital, and strengthen its financial performance.

Long-term

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
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
Total asset turnover 1.46 1.65 1.62 1.63 1.63 1.64 1.61 1.54 1.49 1.39 1.37 1.33 1.33 1.39 1.42 1.44 1.39 1.45 1.41 1.40

The fixed asset turnover ratio for GMS Inc has been relatively stable over the past two years, ranging from 19.10 to 24.34. This indicates that the company generates between $19.10 to $24.34 in sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio is generally preferred as it suggests efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also remained fairly consistent around 1.40 to 1.65 over the same period. This ratio reflects how efficiently the company utilizes all its assets to generate sales. A total asset turnover ratio of 1.40 to 1.65 indicates that for every dollar of assets, the company is generating between $1.40 to $1.65 in sales.

Overall, the stable trend in both fixed asset turnover and total asset turnover ratios suggests that GMS Inc has been maintaining consistent efficiency in generating sales relative to its investment in fixed and total assets.