GMS Inc (GMS)
Quick 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 | 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 | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 719,868 | 783,116 | 943,682 | 929,508 | 849,993 | 794,721 | 880,196 | 837,627 | 792,232 | 775,118 | 872,882 | 820,589 | 750,046 | 700,255 | 732,272 | 656,878 | 558,661 | 410,125 | 434,836 | 430,931 |
| 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 |
| Quick ratio | 0.97 | 1.30 | 1.37 | 1.39 | 1.35 | 1.42 | 1.44 | 1.42 | 1.35 | 1.55 | 1.47 | 1.39 | 1.24 | 1.34 | 1.24 | 1.21 | 1.29 | 1.47 | 1.47 | 1.55 |
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. demonstrates a generally stable liquidity position over the examined period from July 31, 2020, to April 30, 2025. Initially, the ratio was relatively high at 1.55 in July 2020, indicating that the company held sufficient liquid assets to cover its current liabilities without relying on inventory sales. Subsequently, the ratio experienced a gradual decline, reaching a low of 1.21 in July 2021, yet remained above 1.2 through most of 2021 and early 2022, suggesting consistent short-term liquidity.
From October 2021 onward, the ratio showed signs of stabilization and slight improvement, peaking at 1.55 again in January 2023. During this period, the ratio predominantly hovered between 1.2 and 1.5, reflecting a steady and prudent liquidity management. Notably, in April 2023, the ratio decreased slightly to 1.35, and subsequent fluctuations ensued, maintaining values around 1.35 to 1.44 through October 2024.
A significant decline is observed in the latest data point, with the ratio falling to 0.97 as of April 2025. This decrease below 1 suggests that the company's liquid assets may no longer fully cover short-term obligations, indicating potential liquidity concerns or reduced liquid asset holdings in the recent period.
Overall, GMS Inc.’s quick ratio has traditionally maintained a comfortable margin above 1, implying sound liquidity management and the capacity to meet immediate liabilities. The recent decline below the critical threshold warrants attention to potential shifts in liquidity strategy or asset composition, as it may impact the company's ability to sustain its short-term financial stability in the near term.
Peer comparison
Apr 30, 2025