GMS Inc (GMS)
Financial leverage ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,831,270 | 3,759,840 | 3,267,010 | 3,104,400 | 2,483,900 |
| Total stockholders’ equity | US$ in thousands | 1,420,180 | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 |
| Financial leverage ratio | 2.70 | 2.57 | 2.56 | 2.92 | 3.02 |
April 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,831,270K ÷ $1,420,180K
= 2.70
The financial leverage ratio of GMS Inc. demonstrates a declining trend over the period from April 30, 2021, to April 30, 2025. Specifically, the ratio decreased from 3.02 in April 2021 to 2.92 in April 2022, reflecting a slight reduction in leverage. The ratio continued to decline more noticeably in the following year, reaching 2.56 by April 2023. This indicates that the company's reliance on debt financing relative to equity has decreased over this period, suggesting a reduction in financial risk or a shift towards more equity-based funding.
Subsequently, the ratio stabilized at approximately 2.57 in April 2024, maintaining a level close to that of the previous year. By April 2025, the ratio slightly increased to 2.70, representing a modest uptick but still remaining below the levels observed in 2021.
Overall, the trend indicates that GMS Inc. has been gradually reducing its leverage from 2021 through 2023, and then maintaining a relatively stable leverage level in subsequent years, with a slight increase at the end of the observed period. This pattern may suggest strategic efforts to de-leverage or optimize the company's capital structure, potentially aiming to balance debt and equity to manage financial risk effectively.
Peer comparison
Apr 30, 2025