GMS Inc (GMS)
Operating return on assets (Operating ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 292,623 | 442,840 | 505,211 | 418,918 | 190,949 |
| Total assets | US$ in thousands | 3,831,270 | 3,759,840 | 3,267,010 | 3,104,400 | 2,483,900 |
| Operating ROA | 7.64% | 11.78% | 15.46% | 13.49% | 7.69% |
April 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $292,623K ÷ $3,831,270K
= 7.64%
The operating return on assets (ROA) for GMS Inc. exhibits notable fluctuations over the analyzed period from April 2021 to April 2025. In April 2021, the operating ROA stood at 7.69%, reflecting the company's operational efficiency and profitability relative to its asset base at that time. This figure increased significantly in April 2022 to 13.49%, indicating an improvement in operational performance and more effective utilization of its assets. The upward trend continued into April 2023, reaching 15.46%, which is the highest point within the period, suggesting peak operational efficiency and profitability during this timeframe.
However, a decline is observed in April 2024, with the operating ROA decreasing to 11.78%. Although still above the earlier years, this suggests a reduction in operational profitability relative to the asset base, potentially due to increased costs, market challenges, or other operational factors. By April 2025, the ROA further contracts to 7.64%, nearing the initial levels observed in April 2021, which may indicate a period of slowed operational efficiency or external pressures impacting asset utilization and profitability.
Overall, the operating ROA trend from 2021 to 2025 depicts a period of initial improvement, peaking in 2023, followed by a declining trajectory that approaches earlier performance levels. This pattern underscores the importance of analyzing underlying operational factors and external influences to fully understand the causes of these fluctuations and their implications for the company’s long-term asset management and profitability.
Peer comparison
Apr 30, 2025