GMS Inc (GMS)
Working capital 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 |
| Total current assets | US$ in thousands | 1,639,320 | 1,500,910 | 1,547,430 | 1,535,100 | 1,549,520 | 1,567,650 | 1,596,660 | 1,530,000 | 1,423,130 | 1,391,640 | 1,365,090 | 1,192,530 | 1,102,250 | 906,107 | 874,403 | 878,863 | 966,622 | 789,009 | 829,676 | 811,012 |
| Total current liabilities | US$ in thousands | 757,050 | 624,362 | 666,312 | 648,172 | 706,281 | 619,550 | 680,767 | 666,627 | 689,198 | 587,480 | 636,575 | 578,272 | 562,501 | 380,199 | 376,936 | 367,775 | 475,059 | 350,523 | 375,924 | 353,999 |
| 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 |
April 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,503,050K ÷ ($1,639,320K – $757,050K)
= 6.24
The working capital turnover ratio of GMS Inc has shown a fluctuating trend over the past several quarters. The company's working capital turnover ratio has ranged from a low of 5.32 to a high of 7.41 over the period provided.
Overall, the working capital turnover has exhibited a relatively stable performance, staying mostly above the 5.00 benchmark, which indicates efficient utilization of working capital to generate sales. The average working capital turnover for the period is around 6.15, suggesting that, on average, GMS Inc generates sales approximately 6.15 times for every dollar of working capital invested.
It is important to note that a higher working capital turnover ratio generally indicates better efficiency in managing working capital and converting it into sales. GMS Inc's performance in this regard has been generally positive, with the ratio hovering around 6.00 in most periods. However, the slight fluctuations observed indicate some variability in the company's working capital management efficiency over time. It would be beneficial for GMS Inc to continue monitoring and improving its working capital turnover ratio to ensure optimal utilization of resources and enhanced financial performance.
Peer comparison
Apr 30, 2024