GMS Inc (GMS)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.67 | 6.03 | 5.56 | 5.19 | 8.00 | |
| DSO | days | 64.39 | 60.58 | 65.65 | 70.32 | 45.63 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.67
= 64.39
The Days Sales Outstanding (DSO) for GMS Inc has shown some fluctuations in recent years. The company's DSO was 64.39 days as of April 30, 2024, compared to 60.58 days in the previous year and 65.65 days in the year before that.
In general, a lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient operations and effective credit management. Conversely, a higher DSO may suggest slower collections and potential liquidity concerns.
The trend for GMS Inc's DSO over the last five years shows some variability, with the DSO peaking at 70.32 days in April 2021 and reaching a low of 45.63 days in April 2020. This fluctuation could indicate changes in the company's credit policies, customer payment behavior, or overall sales performance.
It would be useful for GMS Inc to further analyze the reasons behind these fluctuations in DSO and consider strategies to optimize their accounts receivable management in order to maintain healthy cash flow and financial stability.
Peer comparison
Apr 30, 2024