The Gap, Inc. (GAP)

Days of sales outstanding (DSO)

		Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021
Receivables turnover		50.12	51.52	45.93	41.78	38.02
DSO	days	7.28	7.08	7.95	8.74	9.60

February 1, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 50.12
= 7.28

The Days of Sales Outstanding (DSO) for The Gap, Inc. have shown a declining trend over the past five years. Starting at 9.60 days on January 30, 2021, the DSO decreased to 8.74 days on January 29, 2022. This trend continued with further reductions to 7.95 days on January 28, 2023, and 7.08 days on February 3, 2024. There was a slight increase to 7.28 days on February 1, 2025, which may indicate a slightly slower collection of accounts receivable compared to the previous year. Overall, the decreasing trend in DSO signifies that The Gap, Inc. has been improving its efficiency in collecting payments from customers, which could positively impact its cash flow and liquidity position.