GMS Inc (GMS)
Pretax margin
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 174,295 | 374,166 | 447,503 | 364,819 | 137,094 |
| Revenue | US$ in thousands | 5,513,740 | 5,501,910 | 5,329,250 | 4,634,880 | 3,298,820 |
| Pretax margin | 3.16% | 6.80% | 8.40% | 7.87% | 4.16% |
April 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $174,295K ÷ $5,513,740K
= 3.16%
The pretax margin of GMS Inc has exhibited notable fluctuations over the period from April 2021 to April 2025. Starting at 4.16% as of April 30, 2021, the margin increased significantly to 7.87% by April 30, 2022, and continued its upward trajectory to reach 8.40% by April 30, 2023. This trend indicates an improvement in profitability before taxes over the initial two-year span, possibly reflecting enhanced operational efficiencies, better pricing strategies, or favorable market conditions during this period.
However, the pretax margin experienced a decline to 6.80% by April 30, 2024. Despite this reduction, it remained above the April 2021 level, suggesting some contraction in profitability margins but not a full reversal of earlier gains. The subsequent decline to 3.16% by April 30, 2025, represents a significant reduction, approaching roughly one-third of the peak margin observed in 2023. This sharp decrease could be indicative of increased costs, competitive pressures, changes in product mix, or other operational challenges impacting profitability before taxes.
Overall, the company's pretax margin has demonstrated a pattern of growth followed by a decline, with the most recent figure considerably lower than the peak achieved in 2023. The trend suggests that while GMS Inc experienced profitability improvements in the early years, recent developments have exerted downward pressure on margins, warranting further analysis to understand the underlying causes affecting its pretax profitability.
Peer comparison
Apr 30, 2025