GMS Inc (GMS)
Days of sales outstanding (DSO)
| 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 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.67 | 5.78 | 5.20 | 5.62 | 6.02 | 5.90 | 5.16 | 5.30 | 5.56 | 5.31 | 4.52 | 4.67 | 5.19 | 7.34 | 6.97 | 7.19 | 8.00 | 7.48 | 6.69 | 6.73 | |
| DSO | days | 64.40 | 63.19 | 70.24 | 64.89 | 60.59 | 61.87 | 70.68 | 68.84 | 65.65 | 68.75 | 80.76 | 78.10 | 70.33 | 49.73 | 52.34 | 50.77 | 45.63 | 48.82 | 54.56 | 54.25 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.67
= 64.40
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO value indicates that a company is collecting payments more quickly, which is favorable as it implies better cash flow management and efficiency in accounts receivable collection.
Analyzing the DSO trend for GMS Inc over the past 20 quarters, we can observe fluctuations in the DSO values. The DSO has ranged from a low of 45.63 days to a high of 80.76 days during this period. Generally, lower DSO values were recorded in the earlier quarters, indicating quicker collections. However, there have been instances of higher DSO values in some quarters, suggesting potential delays in collecting payments.
It is essential for GMS Inc to closely monitor its DSO trend as consistently high DSO values could signify issues with credit policies, collection processes, or customer payment behaviors. Conversely, a decreasing trend in DSO may indicate improvements in collections efficiency.
Overall, while fluctuations in DSO are common for businesses, it is crucial for GMS Inc to strive for efficiency in accounts receivable management to ensure timely collection of revenues and maintain a healthy cash flow position.
Peer comparison
Apr 30, 2024