GMS Inc (GMS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 257,562 | 299,788 | 383,027 | 413,001 | 446,362 | 458,451 | 473,877 | 502,359 | 505,211 | 507,283 | 500,816 | 459,472 | 418,918 | 361,264 | 297,200 | 234,738 | 190,949 | 97,234 | 94,983 | 100,027 |
| Total assets | US$ in thousands | 3,831,270 | 3,793,040 | 4,023,010 | 3,893,300 | 3,759,840 | 3,271,550 | 3,314,400 | 3,300,400 | 3,267,010 | 3,233,460 | 3,245,940 | 3,212,420 | 3,104,400 | 3,086,180 | 2,824,980 | 2,664,080 | 2,483,900 | 2,251,760 | 2,210,870 | 2,225,830 |
| Operating ROA | 6.72% | 7.90% | 9.52% | 10.61% | 11.87% | 14.01% | 14.30% | 15.22% | 15.46% | 15.69% | 15.43% | 14.30% | 13.49% | 11.71% | 10.52% | 8.81% | 7.69% | 4.32% | 4.30% | 4.49% |
April 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $257,562K ÷ $3,831,270K
= 6.72%
The operating return on assets (ROA) for GMS Inc. demonstrates a notable progression over the period from July 2020 to October 2024, with fluctuations extending into early 2025. Starting at approximately 4.49% in July 2020, there was a modest decline to 4.30% by October 2020, followed by a slight recovery to 4.32% in January 2021. Subsequently, a significant upward trend commenced, reaching approximately 7.69% in April 2021 and continuing to strengthen through 2021 and 2022.
By October 2021, the operating ROA had increased to around 10.52%, and it continued its ascent, surpassing 11.71% in January 2022, and reaching a peak of approximately 15.69% in January 2023. The highest recorded value within this period was approximately 15.69%, marking a period of sustained operational efficiency and asset utilization.
Following this peak, the ratio exhibited a gradual decline, decreasing to around 15.46% in April 2023 and further to approximately 15.22% in July 2023. By October 2023, the operating ROA had eased to about 14.30%, indicating a slight contraction in operating profitability relative to assets. This declining trend persisted into early 2024, with the ratio falling to approximately 14.01% in January 2024 and continuing downward to 11.87% in April 2024.
The declining trajectory persisted into mid-2024 and early 2025, with the operating ROA dropping to around 10.61% in July 2024, 9.52% in October 2024, and further declining to near 7.90% in January 2025. By April 2025, the ratio had fallen to approximately 6.72%. This pattern indicates a substantial reduction in the company's operating efficiency in generating return from its asset base over this period.
Overall, the data reflects an initial phase of improving operational efficiency culminating in a peak around early 2023, followed by a consistent decline into 2024 and early 2025. The trend suggests potential challenges in maintaining previous levels of operating profitability relative to assets, warranting further analysis of underlying operational and market factors contributing to this decline.
Peer comparison
Apr 30, 2025