GMS Inc (GMS)
Financial leverage ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,759,840 | 3,267,010 | 3,104,400 | 2,483,900 | 2,324,450 |
| Total stockholders’ equity | US$ in thousands | 1,460,520 | 1,274,760 | 1,064,500 | 822,462 | 633,981 |
| Financial leverage ratio | 2.57 | 2.56 | 2.92 | 3.02 | 3.67 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,759,840K ÷ $1,460,520K
= 2.57
The financial leverage ratio of GMS Inc has shown a decreasing trend over the past five years, decreasing from 3.67 in 2020 to 2.57 in 2024. This indicates that the company has been relying less on debt to finance its operations and growth, which can be considered a positive sign as lower leverage can reduce financial risk and improve financial stability. However, it is important to note that the ratio has fluctuated over the years, with a peak in 2020 at 3.67 followed by a decline in subsequent years. Overall, the downward trend in the financial leverage ratio suggests that GMS Inc has been managing its capital structure more efficiently and moving towards a more sustainable financial position.
Peer comparison
Apr 30, 2024