GMS Inc (GMS)
Working capital 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 |
| Total current assets | US$ in thousands | 1,520,120 | 1,639,320 | 1,549,520 | 1,423,130 | 1,102,250 |
| Total current liabilities | US$ in thousands | 797,558 | 757,050 | 706,281 | 689,198 | 562,501 |
| Working capital turnover | 7.63 | 6.24 | 6.32 | 6.32 | 6.11 |
April 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,513,740K ÷ ($1,520,120K – $797,558K)
= 7.63
The working capital turnover ratio for GMS Inc. has exhibited a generally stable trend over the period from April 30, 2021, to April 30, 2025, with some notable fluctuations.
As of April 30, 2021, the ratio stood at 6.11, indicating that the company generated approximately 6.11 dollars of sales for every dollar of net working capital. This ratio increased slightly to 6.32 in both April 30, 2022, and April 30, 2023, suggesting a marginal improvement in the efficiency with which the company utilized its working capital to generate sales during that period.
However, by April 30, 2024, the ratio slightly declined to 6.24, indicating a minor reduction in this efficiency measure. The most significant change is observed by April 30, 2025, when the ratio rose to 7.63. This increase indicates that, relative to its working capital, GMS Inc. was able to generate considerably higher sales, reflecting improved operational efficiency or a strategic optimization of working capital management.
Overall, the trend suggests a gradual strengthening in the efficiency of working capital utilization, culminating in a notable uplift in 2025. This pattern may reflect effective management strategies, changes in sales volume, or improvements in inventory, receivables, or payables management aimed at maximizing sales relative to working capital invested.
Peer comparison
Apr 30, 2025