GMS Inc (GMS)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.25% | 32.38% | 32.11% | 32.21% | 32.80% |
| Operating profit margin | 8.05% | 9.48% | 9.04% | 5.79% | 3.07% |
| Pretax margin | 6.80% | 8.40% | 7.87% | 4.16% | 1.43% |
| Net profit margin | 5.02% | 6.25% | 5.90% | 3.20% | 0.72% |
Based on the data provided, GMS Inc's profitability ratios have shown a varied trend over the past five years.
The gross profit margin has remained relatively stable around 32%, indicating that the company has been able to maintain a consistent level of profitability on its sales after accounting for the cost of goods sold.
The operating profit margin has fluctuated over the years, with a significant decline in 2021 followed by a slight increase in the most recent year. The company's operating efficiency improved in 2023 and 2024 compared to the previous years.
The pretax margin has also experienced fluctuations, with the highest margin recorded in 2023. This ratio reflects the company's ability to generate profits before accounting for taxes, and the positive trend in recent years is a good sign.
The net profit margin, which indicates the portion of revenues that remains as profit after all expenses have been deducted, has shown an increasing trend over the years. This signifies improving bottom-line profitability for GMS Inc.
Overall, while there have been fluctuations in the profitability ratios of GMS Inc over the past five years, there is a positive trend towards increased profitability, especially in the operating profit margin, pretax margin, and net profit margin, indicating potential improvements in the company's overall financial performance.
Return on investment
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.78% | 15.46% | 13.49% | 7.69% | 4.28% |
| Return on assets (ROA) | 7.34% | 10.19% | 8.81% | 4.25% | 1.01% |
| Return on total capital | 30.79% | 22.13% | 19.21% | 10.88% | 6.78% |
| Return on equity (ROE) | 18.90% | 26.12% | 25.69% | 12.83% | 3.69% |
GMS Inc's profitability ratios indicate a positive trend over the past five years.
Operating return on assets (Operating ROA) has fluctuated over the period but has generally shown an increasing trend, starting at 4.28% in 2020 and reaching 11.78% in 2024. This indicates the company's ability to generate operating income relative to its assets has improved.
Return on assets (ROA) has also shown a similar pattern of improvement, starting at 1.01% in 2020 and rising to 7.34% in 2024. This ratio reflects the company's overall ability to generate profit from its total assets.
Return on total capital has experienced significant growth, increasing from 6.78% in 2020 to 30.79% in 2024. This indicates that the company's profitability in relation to its total capital has been on an upward trajectory.
Return on equity (ROE) has also demonstrated a positive trend, growing from 3.69% in 2020 to 18.90% in 2024. This ratio reveals how effectively the company is generating profit from the shareholders' equity invested in the business.
Overall, the profitability ratios of GMS Inc suggest increasing efficiency and effectiveness in utilizing its assets and capital to generate earnings for its shareholders.