GMS Inc (GMS)
Debt-to-equity 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-equity ratio | 0.00 | 0.82 | 1.07 | 1.13 | 1.65 |
April 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,460,520K
= 0.00
The debt-to-equity ratio of GMS Inc has shown a significant decrease from 1.65 in April 2020 to 0.00 in April 2024, indicating a substantial improvement in the company's financial structure. This may suggest that GMS Inc has reduced its debt levels or increased its equity base over the years. The decreasing trend in the debt-to-equity ratio signifies that the company may be relying less on external borrowing and potentially strengthening its financial position. This positive change in the ratio may signal improved financial health and reduced risk for GMS Inc. It is important to further investigate the reasons behind this improvement to assess the long-term sustainability of the company's financial strategy.
Peer comparison
Apr 30, 2024