GMS Inc (GMS)
Financial leverage ratio
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,759,840 | 3,271,550 | 3,314,400 | 3,300,400 | 3,267,010 | 3,233,460 | 3,245,940 | 3,212,420 | 3,104,400 | 3,086,180 | 2,824,980 | 2,664,080 | 2,483,900 | 2,251,760 | 2,210,870 | 2,225,830 | 2,324,450 | 2,245,280 | 2,281,350 | 2,274,390 |
| Total stockholders’ equity | US$ in thousands | 1,460,520 | 1,418,940 | 1,375,880 | 1,354,810 | 1,274,760 | 1,230,700 | 1,183,940 | 1,139,220 | 1,064,500 | 1,003,280 | 951,351 | 877,243 | 822,462 | 761,014 | 717,897 | 681,871 | 633,981 | 707,326 | 696,039 | 662,295 |
| Financial leverage ratio | 2.57 | 2.31 | 2.41 | 2.44 | 2.56 | 2.63 | 2.74 | 2.82 | 2.92 | 3.08 | 2.97 | 3.04 | 3.02 | 2.96 | 3.08 | 3.26 | 3.67 | 3.17 | 3.28 | 3.43 |
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 been fluctuating over the past several periods. The ratio ranged from a low of 2.31 to a high of 3.67. The trend shows an increase in leverage initially, peaking around the middle of the observation period, before slightly decreasing towards the end.
A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its assets, which can magnify returns but also increase financial risk. GMS Inc's increasing trend in leverage ratio from 2020 to mid-2022 suggests a growing reliance on debt to fund operations and expansion. However, the slight decrease in the ratio towards the end of the period may indicate a potential shift towards deleveraging or adopting a more conservative capital structure.
Overall, GMS Inc's financial leverage ratio analysis highlights the company's evolving capital structure and its management of debt levels in relation to its equity. Further analysis and contextual information would be needed to fully assess the implications of these changes on the company's financial health and performance.
Peer comparison
Apr 30, 2024