GMS Inc (GMS)
Return on assets (ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 115,469 | 276,079 | 332,991 | 273,442 | 105,560 |
| Total assets | US$ in thousands | 3,831,270 | 3,759,840 | 3,267,010 | 3,104,400 | 2,483,900 |
| ROA | 3.01% | 7.34% | 10.19% | 8.81% | 4.25% |
April 30, 2025 calculation
ROA = Net income ÷ Total assets
= $115,469K ÷ $3,831,270K
= 3.01%
The analysis of GMS Inc.'s return on assets (ROA) over the specified period reveals a pattern of initial growth followed by fluctuations. As of April 30, 2021, the company's ROA was established at 4.25%, indicating the proportion of net income generated from its total assets at that time. By April 30, 2022, the ROA more than doubled to 8.81%, signifying a significant improvement in asset efficiency and profitability. This upward trend continued, culminating in a peak of 10.19% as of April 30, 2023, reflecting a period of strong operational performance and effective asset utilization.
However, subsequent to this peak, a decline is observed, with the ROA decreasing to 7.34% by April 30, 2024. This retreat suggests a potential reduction in profitability or a change in asset base efficiency. The trend further diminishes as of April 30, 2025, where the ROA drops to 3.01%, marking a substantial setback from the prior highs and indicating a decline in the company's ability to generate net income from its assets.
Overall, the data demonstrates that GMS Inc. experienced a robust growth in asset efficiency during the period leading up to April 2023, followed by a period of depreciation in ROA, which could be attributable to various operational, strategic, or macroeconomic factors. The fluctuations highlight the importance of monitoring underlying drivers of profitability and asset management in understanding the company's overall financial health and operational performance.