GMS Inc (GMS)
Cash ratio
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 55,599 | 59,029 | 83,928 | 53,172 | 166,148 | 88,341 | 76,517 | 81,449 | 164,745 | 186,663 | 124,201 | 106,613 | 101,916 | 86,975 | 59,310 | 43,590 | 167,012 | 150,573 | 118,168 | 139,709 |
| Short-term investments | US$ in thousands | — | — | — | 2,300 | 3,700 | 2,200 | 4,000 | 4,000 | — | 810 | 3,300 | 1,803 | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 797,558 | 648,207 | 748,697 | 708,200 | 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 |
| Cash ratio | 0.07 | 0.09 | 0.11 | 0.08 | 0.22 | 0.15 | 0.12 | 0.13 | 0.23 | 0.30 | 0.19 | 0.16 | 0.15 | 0.15 | 0.09 | 0.08 | 0.30 | 0.40 | 0.31 | 0.38 |
April 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,599K
+ $—K)
÷ $797,558K
= 0.07
The analysis of GMS Inc.'s cash ratio over the specified periods reveals notable fluctuations with an overall downward trend from July 2020 to October 2024. Initially, the cash ratio stood at 0.38 in July 2020, indicating that the company's cash and cash equivalents covered approximately 38% of its current liabilities. This ratio experienced a slight decline to 0.31 by October 2020, followed by an increase to 0.40 in January 2021, suggesting improved liquidity at that point.
From April 2021 to July 2021, the ratio decreased markedly from 0.30 to 0.08, reaching its lowest point during the analyzed timeframe. Similar low levels persisted through October 2021 and into April 2022, with the ratio remaining around 0.09 to 0.15, indicating a reduced capacity to cover current liabilities solely through cash holdings. A modest recovery occurred by January 2023, with the ratio rising to 0.30, but subsequent periods saw fluctuations: a decline to 0.13 in July 2023 followed by a slight uptick to 0.12 in October 2023.
Continuing into early 2024, the ratio saw some stabilization, reaching 0.15 in January and 0.22 in April 2024. However, the ratio declined again to 0.08 in July 2024, the lowest in recent months, before increasing marginally to 0.11 in October 2024. The projected figures for the subsequent periods continue to show low to moderate ratios, generally remaining below 0.20, with some periods dipping as low as 0.07 in April 2025.
Overall, the cash ratio for GMS Inc. demonstrates a pattern of decline from relatively higher levels seen in 2020 to significantly lower levels in recent periods. This trend may suggest a strategic shift toward relying less on cash and cash equivalents for short-term liquidity, or potential changes in operating cash flows, liquidity management, or current liabilities. The persistent low ratios, especially those below 0.20, highlight a conservative liquidity position that may warrant further analysis to assess potential impacts on the company's ability to meet short-term obligations without resorting to other liquid assets or financing options.
Peer comparison
Apr 30, 2025