GMS Inc (GMS)
Quick ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 166,148 | 164,745 | 101,916 | 167,012 | 210,909 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 970,960 | 884,728 | 833,714 | 635,602 | 405,254 |
| Total current liabilities | US$ in thousands | 757,050 | 706,281 | 689,198 | 562,501 | 475,059 |
| Quick ratio | 1.50 | 1.49 | 1.36 | 1.43 | 1.30 |
April 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($166,148K
+ $—K
+ $970,960K)
÷ $757,050K
= 1.50
The quick ratio of GMS Inc has been relatively stable over the past five years, ranging from 1.30 in 2020 to 1.50 in 2024. This indicates the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1.0 generally suggests that the company has an adequate level of liquid assets to cover its short-term liabilities.
The slight fluctuations in the quick ratio over the years may reflect changes in the company's asset composition and liabilities. A higher quick ratio can indicate a stronger liquidity position, reducing the company's risk of defaulting on its short-term obligations.
Overall, GMS Inc's quick ratio has been at healthy levels, providing assurance that the company has sufficient liquidity to meet its immediate financial commitments. Further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's overall financial health.
Peer comparison
Apr 30, 2024