GMS Inc (GMS)

The analysis of GMS Inc.'s Days of Sales Outstanding (DSO) over the specified period reveals notable trends in the company's accounts receivable management efficiency. As of April 30, 2021, the DSO was approximately 61.81 days, indicating the average duration the company took to collect its receivables. This figure decreased to around 59.07 days by April 30, 2022, reflecting a modest improvement in collection efficiency.

The downward trend continued into April 30, 2023, with the DSO declining further to approximately 54.26 days. This reduction suggests that GMS Inc. was able to collect receivables more quickly, enhancing cash flow management during that period. However, the DSO saw a slight increase in the subsequent year, reaching approximately 56.39 days as of April 30, 2024. This uptick indicates a minor lengthening in the receivables collection period, which could merit further investigation to determine whether this represents a temporary fluctuation or an emerging trend.

By April 30, 2025, the DSO had decreased significantly to approximately 47.65 days, surpassing the prior lows and indicating a substantial improvement in receivables collection efficiency. This reduction suggests that GMS Inc. has been effective in accelerating cash collection cycles, which can positively impact liquidity and overall operational efficiency.

In summary, over the four-year span, GMS Inc. has demonstrated an overall trend toward improved receivables collection, with the DSO decreasing from around 61.81 days in 2021 to 47.65 days in 2025. Despite a slight temporary increase in 2024, the long-term trajectory emphasizes enhanced receivables management and potential strengthening of cash flow position.

Peer comparison

Apr 30, 2025