GMS Inc (GMS)
Return on total capital
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 449,627 | 513,346 | 422,916 | 190,880 | 114,043 |
| Long-term debt | US$ in thousands | — | 1,044,640 | 1,136,580 | 932,409 | 1,047,280 |
| Total stockholders’ equity | US$ in thousands | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 | 633,981 |
| Return on total capital | 30.79% | 22.13% | 19.21% | 10.88% | 6.78% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $449,627K ÷ ($—K + $1,460,520K)
= 30.79%
Over the five-year period from April 30, 2020, to April 30, 2024, GMS Inc's return on total capital has shown a consistent upward trend, starting at 6.78% in 2020 and increasing to 30.79% in 2024. This indicates that the company has been effectively utilizing its total capital to generate earnings and create value for its shareholders. The steady improvement in return on total capital suggests that GMS Inc has been making efficient use of its financial resources and assets over the years, leading to increased profitability and potential for further growth. Overall, the rising trend in return on total capital reflects positively on the financial performance and management efficiency of GMS Inc.
Peer comparison
Apr 30, 2024