The Gap, Inc. (GAP)

Days of sales outstanding (DSO)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Receivables turnover		51.52	45.93	41.78	38.02	51.84
DSO	days	7.08	7.95	8.74	9.60	7.04

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 51.52
= 7.08

The days of sales outstanding (DSO) for The Gap, Inc. have shown a varying trend over the past five years. The DSO has decreased from 9.60 days in January 2021 to 7.08 days in February 2024, indicating a positive trend in collecting accounts receivable more efficiently. This suggests that the company has been able to convert its accounts receivable into cash at a faster pace in recent years, potentially improving its cash flow and liquidity position. Overall, the decreasing trend in DSO reflects a potentially stronger credit management and collection performance by The Gap, Inc. over the analyzed period.