GMS Inc (GMS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,420,180 | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 |
| ROE | 8.13% | 18.90% | 26.12% | 25.69% | 12.83% |
April 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $115,469K ÷ $1,420,180K
= 8.13%
The Return on Equity (ROE) of GMS Inc. has exhibited notable fluctuations over the specified period. As of April 30, 2021, the ROE stood at 12.83%, indicating a modest level of profitability relative to shareholders' equity. The following year, by April 30, 2022, the ROE surged to 25.69%, more than doubling the previous year's figure, reflecting a significant improvement in the company's efficiency in generating profits from shareholders' investments.
In the subsequent year, by April 30, 2023, the ROE maintained a high level at 26.12%, showing stability and sustained profitability at a high efficiency level. However, a decline is observed in the year ending April 30, 2024, with the ROE decreasing to 18.90%. Despite this decrease, the ROE remains relatively elevated compared to the 2021 level, although it signals a reduction in profitability or efficiency relative to equity.
By April 30, 2025, the ROE decreased further to 8.13%, approaching levels closer to the initial year but still higher, albeit significantly lower than the peaks observed in 2022 and 2023. This downward trend indicates a potential reduction in net income relative to shareholders' equity, or an increase in shareholders’ equity that has outpaced net income growth.
Overall, GMS Inc.'s ROE experienced rapid growth between 2021 and 2023, reaching peak levels that suggest improved operational efficiency or profitability during that period. The subsequent decline in 2024 and 2025 suggests a weakening in these metrics, possibly due to changes in net income margins, increased equity base, or other operational factors impacting profitability.