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

Company name
Symbol
Working capital turnover
GMS Inc
GMS
7.63
Boise Cascad Llc
BCC
5.09