GMS Inc (GMS)
Receivables turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,513,740 | 5,501,910 | 5,329,250 | 4,634,880 | 3,298,820 |
| Receivables | US$ in thousands | 719,868 | 849,993 | 792,232 | 750,046 | 558,661 |
| Receivables turnover | 7.66 | 6.47 | 6.73 | 6.18 | 5.90 |
April 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,513,740K ÷ $719,868K
= 7.66
The receivables turnover ratio for GMS Inc. demonstrates a generally positive trend over the observed period from April 30, 2021, to April 30, 2025. Specifically, the ratio increased from 5.90 in 2021 to 6.18 in 2022, indicating a modest improvement in the company's ability to collect its receivables. This upward movement continues into 2023, with the ratio reaching 6.73, reflecting further enhancement in receivables management and collection efficiency.
In 2024, the ratio slightly declined to 6.47, signaling a minor setback in receivables turnover, though it still remains above the levels observed in 2022 and 2021. Despite this slight decrease, the ratio in 2024 remains indicative of relatively effective receivables collection.
The most notable change occurs in 2025, where the ratio increases substantially to 7.66. This increase suggests a significant improvement in receivables collection efficiency, which could be attributable to tighter credit policies or improved customer payment practices.
Overall, the trend of increasing receivables turnover ratios over the period signifies an improvement in GMS Inc.'s ability to collect its accounts receivable more rapidly, which can positively influence cash flow and liquidity. However, the slight fluctuation in 2024 indicates that the company’s collection performance may experience some variability, warranting continued observation to ensure sustained receivables management efficiency.
Peer comparison
Apr 30, 2025