GMS Inc (GMS)
Return on equity (ROE)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 276,079 | 332,991 | 273,442 | 105,560 | 23,381 |
| Total stockholders’ equity | US$ in thousands | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 | 633,981 |
| ROE | 18.90% | 26.12% | 25.69% | 12.83% | 3.69% |
April 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $276,079K ÷ $1,460,520K
= 18.90%
Based on the data provided, the return on equity (ROE) for GMS Inc has displayed a fluctuating trend over the past five years. In April 2024, the ROE was 18.90%, showing a decrease from the previous year when it was 26.12%. Despite this drop, the current ROE is still relatively strong compared to the historical trend.
In the earlier years, the ROE showed steady growth, from 3.69% in April 2020 to 12.83% in April 2021, and further increased to 25.69% in April 2022. This indicates that the company was effectively generating profit relative to shareholders' equity during these periods.
It is noteworthy that the ROE peaked in April 2023 at 26.12%, which may have been a result of improved operational efficiency, increased profitability, or better utilization of shareholders' equity. The subsequent decrease in ROE in April 2024 could be a point of concern and may warrant further analysis to understand the factors contributing to this decline.
Overall, GMS Inc has demonstrated the ability to generate solid returns for its shareholders over the years, with fluctuations in ROE reflecting changes in the company's financial performance and efficiency in utilizing equity. Monitoring ROE trends can provide valuable insights into the company's financial health and performance over time.
Peer comparison
Apr 30, 2024