GMS Inc (GMS)
Days of sales outstanding (DSO)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.66 | 7.14 | 5.92 | 5.96 | 6.47 | 6.79 | 6.10 | 6.42 | 6.73 | 6.86 | 5.99 | 6.04 | 6.18 | 6.11 | 5.29 | 5.39 | 5.90 | 7.65 | 7.24 | 7.42 | |
| DSO | days | 47.65 | 51.11 | 61.61 | 61.23 | 56.39 | 53.79 | 59.84 | 56.84 | 54.26 | 53.24 | 60.89 | 60.48 | 59.07 | 59.74 | 68.96 | 67.76 | 61.81 | 47.71 | 50.42 | 49.20 |
April 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.66
= 47.65
The Days of Sales Outstanding (DSO) for GMS Inc. demonstrates fluctuations over the observed period from July 31, 2020, to April 30, 2025. Initially, the DSO was approximately 49.2 days in July 2020, indicating the average period it takes to collect receivables. This figure increased gradually, reaching a peak of approximately 68.96 days in October 2021, reflecting a lengthening of the collection cycle.
Subsequently, the DSO shows signs of cyclicality with periods of contraction and expansion, suggesting varying efficiency in receivables management. From early 2022 onwards, the DSO generally stabilized around the 55–60 day range, with some minor fluctuations. Notably, in January 2023, it decreased to approximately 53.24 days, indicating an improvement in collection efforts, followed by a slight increase yet remaining within a similar band through mid-2023.
Towards the latter part of the observed period, the DSO exhibits a declining trend, reaching a low of around 47.65 days in April 2025. This decrease suggests an enhancement in the company's receivables collection efficiency over time.
Overall, the DSO trend reflects periods of both prolonged and more efficient receivables turnover, with the most recent data indicating a movement toward shorter collection periods relative to the earlier peaks. The fluctuations may be influenced by changes in credit policies, customer payment behavior, or operational efficiencies, but the recent downward trend signals an improvement in receivables management.