GMS Inc (GMS)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 115,469 | 145,762 | 219,076 | 246,497 | 276,079 | 295,285 | 308,155 | 330,351 | 332,991 | 333,894 | 330,502 | 301,710 | 273,442 | 230,692 | 185,435 | 139,543 | 105,560 | 30,358 | 25,111 | 25,780 |
| 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 |
| ROA | 3.01% | 3.84% | 5.45% | 6.33% | 7.34% | 9.03% | 9.30% | 10.01% | 10.19% | 10.33% | 10.18% | 9.39% | 8.81% | 7.48% | 6.56% | 5.24% | 4.25% | 1.35% | 1.14% | 1.16% |
April 30, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $115,469K ÷ $3,831,270K
= 3.01%
The analysis of GMS Inc.'s return on assets (ROA) over the period from July 31, 2020, to April 30, 2025, reveals notable fluctuations reflecting the company's underlying operational performance and efficiency.
Between July 31, 2020, and October 31, 2020, the ROA remained relatively stable, at approximately 1.16% and 1.14%, indicating modest asset profitability during this period. A gradual increase commenced thereafter, reaching 1.35% as of January 31, 2021. This upward trend accelerated significantly from April 30, 2021, when ROA surged to 4.25%, continuing to improve through July 31, 2021, at 5.24%, and reaching a peak of 10.33% on January 31, 2023.
From early 2023 onward, the ROA demonstrated a declining pattern, declining slightly from 10.33% in January 2023 to 9.30% in October 2023. The downward trend persisted through 2024 and into 2025, with the ROA decreasing to 7.34% by April 30, 2024, further declining to 6.33% by July 31, 2024, and reaching 5.45% on October 31, 2024. This decline continued into 2025, with the ROA falling to 3.84% as of January 31, 2025, and further decreasing to 3.01% by April 30, 2025.
Overall, the ROA trend indicates an initial phase of stability followed by a period of strong growth up to early 2023, suggesting improved operational efficiencies or increased profitability relative to asset base during that time. The subsequent decline in ROA suggests a reduction in asset profitability or efficiency, which could be attributable to various factors such as increased asset base without proportional profit growth, changing market dynamics, or operational challenges.