GMS Inc (GMS)
Quick ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 55,599 | 166,148 | 164,745 | 101,916 | 167,012 |
| Short-term investments | US$ in thousands | — | 3,700 | — | — | — |
| Receivables | US$ in thousands | 719,868 | 849,993 | 792,232 | 750,046 | 558,661 |
| Total current liabilities | US$ in thousands | 797,558 | 757,050 | 706,281 | 689,198 | 562,501 |
| Quick ratio | 0.97 | 1.35 | 1.35 | 1.24 | 1.29 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($55,599K
+ $—K
+ $719,868K)
÷ $797,558K
= 0.97
The quick ratio of GMS Inc has demonstrated fluctuations over the period from April 2021 to April 2025. As of April 30, 2021, the quick ratio stood at 1.29, indicating that the company's liquid assets were approximately 1.29 times its current liabilities, suggesting a comfortable liquidity position at that time. By April 30, 2022, this ratio slightly declined to 1.24, reflecting a minor decrease in the company's short-term liquidity or a slight increase in current liabilities or reduction in liquid assets.
Subsequently, the quick ratio improved to 1.35 as of April 30, 2023, signifying an enhancement in the company's immediate liquidity position. This improvement persisted into April 30, 2024, maintaining the ratio at 1.35, which indicates stability in liquidity levels over this period.
However, by April 30, 2025, the quick ratio experienced a decline to 0.97. This drop below 1.0 implies that the company's liquid assets were insufficient to cover its current liabilities, signaling a potential liquidity concern or increased short-term obligations relative to liquid assets at that point in time.
Overall, the data shows that GMS Inc maintained a generally healthy quick ratio above 1.0 from 2021 through early 2024, reflecting adequate short-term liquidity. The decline to below 1.0 in 2025 suggests a weakening in liquidity position, which warrants further analysis to determine underlying causes such as asset liquidations, increased liabilities, or operational changes.
Peer comparison
Apr 30, 2025