The Gap, Inc. (GAP)
Days of sales outstanding (DSO)
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) ratio measures how efficiently a company is able to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is favorable as it signifies better cash flow management.
Looking at the historical DSO data of The Gap, Inc., we can see that the trend has been fluctuating over the periods provided. As of the latest available data in February 2025, the DSO stands at 7.28 days, indicating that on average, The Gap, Inc. takes approximately 7.28 days to collect payments from customers.
It is important to note that having a lower DSO is generally positive, as it implies that the company has efficient credit management processes in place and is able to convert sales into cash quickly. Consistent monitoring and analysis of DSO over time can provide insights into the company's liquidity position and effectiveness in managing its accounts receivable.
Peer comparison
Feb 1, 2025