GMS Inc (GMS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 | 633,981 |
| Debt-to-capital ratio | 0.00 | 0.45 | 0.52 | 0.53 | 0.62 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,460,520K)
= 0.00
The debt-to-capital ratio of GMS Inc has seen a declining trend over the past five years. It decreased from 0.62 in April 2020 to 0.00 in April 2024. This indicates that the company has reduced its debt relative to its capital structure over this period. A lower debt-to-capital ratio suggests that the company is relying less on debt financing and is possibly in a stronger financial position. It is important to note that a debt-to-capital ratio of 0.00 in April 2024 could be due to various reasons such as paying off debt entirely or restructuring its capital base. Overall, the decreasing trend in the debt-to-capital ratio of GMS Inc reflects a positive trajectory in terms of its debt management and financial stability. However, further analysis in conjunction with other financial metrics is recommended for a more comprehensive evaluation of the company's financial health.
Peer comparison
Apr 30, 2024