GMS Inc (GMS)
Cash ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 55,599 | 166,148 | 164,745 | 101,916 | 167,012 |
| Short-term investments | US$ in thousands | — | 3,700 | — | — | — |
| Total current liabilities | US$ in thousands | 797,558 | 757,050 | 706,281 | 689,198 | 562,501 |
| Cash ratio | 0.07 | 0.22 | 0.23 | 0.15 | 0.30 |
April 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,599K
+ $—K)
÷ $797,558K
= 0.07
The cash ratio of GMS Inc over the period from April 2021 to April 2025 demonstrates notable fluctuations, reflecting changes in the company's liquidity position. As of April 30, 2021, the cash ratio was 0.30, indicating that GMS Inc held cash and cash equivalents sufficient to cover roughly 30% of its current liabilities. This suggests a relatively conservative liquidity posture at that time.
By April 30, 2022, the cash ratio declined to 0.15, representing a significant reduction in short-term liquidity cushion, with cash and equivalents accounting for only 15% of current liabilities. This decrease may be indicative of increased utilization of cash resources or a strategic shift toward other forms of liquidity or working capital management.
In the subsequent year, the cash ratio increased modestly to 0.23 as of April 30, 2023. Although higher than the previous year, this value still remains below the 2021 level, suggesting some recovery in cash holdings relative to current liabilities but without reaching prior levels.
The ratio remained relatively stable at 0.22 as of April 30, 2024, indicating a consistent but limited cash buffer relative to current obligations.
However, by April 30, 2025, the cash ratio sharply declined to 0.07, falling to the lowest level observed in the provided data. Such a low ratio implies that cash and cash equivalents cover only 7% of current liabilities, suggesting a significant reduction in the company's immediate liquidity position. This could be associated with increased working capital uses, potential liquidity constraints, or strategic choices that rely less on cash reserves.
Overall, the trend demonstrates a decline in GMS Inc’s cash ratio from 2021 through 2025, punctuated by a temporary rebound in 2023. The decreasing trend, particularly the substantial drop by 2025, indicates a diminishing liquidity buffer, which warrants continued observation as it may affect the company's capacity to meet short-term obligations efficiently and could signal underlying changes in operational strategy or financial health.
Peer comparison
Apr 30, 2025