GMS Inc (GMS)
Current ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.91 | 2.17 | 2.19 | 2.06 | 1.96 |
April 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,520,120K ÷ $797,558K
= 1.91
The data indicates that GMS Inc.'s current ratio has experienced fluctuations over the period from April 30, 2021, to April 30, 2025. As of April 30, 2021, the current ratio stood at 1.96, reflecting a sound liquidity position whereby current assets nearly doubled current liabilities. This ratio experienced a modest increase in the subsequent year, rising to 2.06 as of April 30, 2022, indicating an improvement in the company's ability to cover its short-term obligations with its short-term assets.
The ratio continued its upward trend, reaching 2.19 on April 30, 2023. This peak suggests an optimal liquidity stance, with GMS Inc. holding a comfortable buffer of current assets relative to current liabilities. However, in the following period, a slight decrease was observed, with the ratio declining marginally to 2.17 on April 30, 2024. Although this represents a minor reduction, the ratio remains at a relatively high level, suggesting consistent liquidity stability.
By April 30, 2025, the current ratio further declined to 1.91. While still above the critical threshold of 1, which indicates that current assets exceed current liabilities, the decreasing trend may warrant monitoring. A ratio approaching closer to 1 may imply a reduction in liquidity margins, potentially signaling increased pressures on meeting short-term obligations.
Overall, GMS Inc.'s current ratio has remained comfortably above 1 throughout the analyzed period, implying a generally stable liquidity position. The slight downward trend observed in the most recent year indicates a possible shift towards a leaner liquidity buffer, emphasizing the importance of ongoing liquidity management to ensure continued operational flexibility.
Peer comparison
Apr 30, 2025