GMS Inc (GMS)
Return on total capital
| 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 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 449,627 | 464,106 | 481,364 | 509,663 | 513,346 | 513,968 | 506,576 | 464,247 | 422,916 | 360,143 | 297,409 | 234,806 | 190,880 | 115,027 | 109,907 | 114,260 | 114,043 | 172,588 | 169,202 | 166,731 |
| Long-term debt | US$ in thousands | — | 982,667 | 1,028,280 | 1,047,540 | 1,044,640 | 1,169,260 | 1,166,540 | 1,192,100 | 1,136,580 | 1,281,740 | 1,062,290 | 1,016,040 | 932,409 | 942,598 | 946,721 | 995,390 | 1,047,280 | 1,020,310 | 1,054,080 | 1,111,700 |
| Total stockholders’ equity | US$ in thousands | 1,460,520 | 1,418,940 | 1,375,880 | 1,354,810 | 1,274,760 | 1,230,700 | 1,183,940 | 1,139,220 | 1,064,500 | 1,003,280 | 951,351 | 877,243 | 822,462 | 761,014 | 717,897 | 681,871 | 633,981 | 707,326 | 696,039 | 662,295 |
| Return on total capital | 30.79% | 19.32% | 20.02% | 21.22% | 22.13% | 21.42% | 21.55% | 19.91% | 19.21% | 15.76% | 14.77% | 12.40% | 10.88% | 6.75% | 6.60% | 6.81% | 6.78% | 9.99% | 9.67% | 9.40% |
April 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $449,627K ÷ ($—K + $1,460,520K)
= 30.79%
The return on total capital for GMS Inc has shown a fluctuating trend over the past few periods. The latest return on total capital as of April 30, 2024, stands at 30.79%, exhibiting a significant improvement from the previous period. This indicates that the company has been able to generate a higher return in proportion to its total capital invested.
Looking back at the trend, there have been fluctuations in the return on total capital over the past few quarters, with some periods showing higher returns than others. The return on total capital has ranged from as low as 6.60% in January 31, 2021, to as high as 30.79% in April 30, 2024.
Overall, the return on total capital trend for GMS Inc indicates some variability in the company's ability to generate returns on the total capital employed. It is important to further analyze the underlying factors driving these fluctuations to assess the company's efficiency and profitability in utilizing its capital resources.
Peer comparison
Apr 30, 2024