GMS Inc (GMS)
Debt-to-assets ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 1,044,640 | 1,136,580 | 932,409 | 1,047,280 |
| Total assets | US$ in thousands | 3,759,840 | 3,267,010 | 3,104,400 | 2,483,900 | 2,324,450 |
| Debt-to-assets ratio | 0.00 | 0.32 | 0.37 | 0.38 | 0.45 |
April 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $3,759,840K
= 0.00
Over the past five years, GMS Inc's debt-to-assets ratio has demonstrated a declining trend, decreasing from 0.45 in April 2020 to 0.00 in April 2024. This represents a significant reduction in the company's reliance on debt to finance its assets. A lower debt-to-assets ratio indicates that the company has a lower proportion of debt relative to its total assets, which could imply improved financial flexibility and lower financial risk.
The decreasing trend in the debt-to-assets ratio may suggest that GMS Inc has been actively managing its debt levels, either by paying down existing debt, using more equity financing, or experiencing growth in total assets without a corresponding increase in debt. This trend is generally viewed positively by investors and creditors as it indicates a more conservative financial approach.
The decreasing debt-to-assets ratio over the years signals a healthier financial position for GMS Inc, as the company appears to be less leveraged and potentially more capable of withstanding economic downturns or unforeseen financial challenges. Investors and stakeholders may view this trend favorably as it reflects prudent financial management strategies aimed at enhancing the company's long-term stability and sustainability.
Peer comparison
Apr 30, 2024