GMS Inc (GMS)
Days of inventory on hand (DOH)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 8.64 | 8.32 | 7.59 | 8.63 | 10.40 | |
| DOH | days | 42.24 | 43.88 | 48.07 | 42.28 | 35.11 |
April 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.64
= 42.24
GMS Inc's days of inventory on hand (DOH) has shown some fluctuation over the past five years, ranging from a low of 35.11 days in Apr 30, 2020, to a high of 48.07 days in Apr 30, 2022. As of Apr 30, 2024, the DOH stands at 42.24 days.
The downward trend from 2020 to 2021 indicates that the company was managing its inventory more efficiently, but this trend reversed in 2022 with the DOH peaking. This increase may suggest potential issues with inventory management or a buildup of excess inventory that could impact working capital and liquidity.
Overall, GMS Inc's DOH metric should be monitored closely to ensure that inventory levels are optimized to meet demand effectively while avoiding the risk of overstocking, tying up capital, and potentially leading to obsolescence.
Peer comparison
Apr 30, 2024