GMS Inc (GMS)
Days of inventory on hand (DOH)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.47 | 6.42 | 6.26 | 5.71 | 6.26 | |
| DOH | days | 56.43 | 56.89 | 58.30 | 63.91 | 58.28 |
April 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.47
= 56.43
The days of inventory on hand (DOH) for GMS Inc over the period from April 30, 2021, to April 30, 2025, exhibits notable fluctuation, reflecting the company's inventory management and operational efficiency during this timeframe. Specifically, the DOH was recorded at approximately 58.28 days as of April 30, 2021, indicating the average duration inventory remained unsold. By April 30, 2022, this metric increased to about 63.91 days, suggesting a longer inventory cycle possibly due to inventory buildup or slower sales velocity during that year.
Subsequently, the DOH declined to approximately 58.30 days as of April 30, 2023, aligning closely with the level observed in 2021, which may indicate a normalization of inventory turnover. The downward trend continued slightly in the following years, with DOH reaching about 56.89 days by April 30, 2024, and further decreasing to roughly 56.43 days as of April 30, 2025. This consistent reduction points toward improved inventory management and faster inventory turnover relative to sales, which could be beneficial for cash flow and operational efficiency.
Overall, the data demonstrates that GMS Inc experienced a temporary increase in inventory holding period in 2022 but has generally maintained a relatively stable and slightly improving inventory turnover rate in subsequent years. This trend suggests effective inventory management practices aimed at minimizing excess stock and aligning inventory levels more closely with sales activity.