GMS Inc (GMS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,503,050 | 5,394,120 | 5,370,190 | 5,380,100 | 5,329,640 | 5,314,190 | 5,233,030 | 4,952,480 | 4,634,950 | 4,278,503 | 3,876,060 | 3,538,350 | 3,298,880 | 3,137,527 | 3,147,690 | 3,196,755 | 3,241,333 | 3,250,632 | 3,213,184 | 3,185,086 |
| Receivables | US$ in thousands | 970,960 | 933,789 | 1,033,400 | 956,516 | 884,728 | 900,797 | 1,013,290 | 934,093 | 833,714 | 805,872 | 857,609 | 757,141 | 635,602 | 427,476 | 451,342 | 444,674 | 405,254 | 434,801 | 480,321 | 473,411 |
| 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 |
April 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,503,050K ÷ $970,960K
= 5.67
The receivables turnover for GMS Inc has shown fluctuating trends over the past few quarters. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio generally implies that the company is collecting its outstanding payments more quickly.
Looking at the data provided, we observe that the receivables turnover ratio has varied between 4.52 and 8.00 over the past two years. It peaked at 8.00 in January 2020 and has since fluctuated within a range, with some quarters showing higher turnover ratios than others.
Overall, the average receivables turnover ratio has been around 5.90 over the past two years. This suggests that, on average, GMS Inc collects its accounts receivable approximately 5.90 times per year. An increasing trend in the ratio indicates improvements in the company's credit and collection policies, leading to faster collections. Conversely, a decreasing trend may suggest potential issues with collecting payments efficiently.
It would be beneficial for GMS Inc to continue monitoring and analyzing its receivables turnover ratio to ensure prompt collections and maintain a healthy cash flow position.
Peer comparison
Apr 30, 2024