GMS Inc (GMS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.43 | 56.50 | 55.90 | 57.84 | 55.86 | 57.83 | 56.20 | 58.47 | 58.30 | 59.49 | 59.21 | 62.69 | 63.91 | 73.44 | 76.60 | 71.51 | 58.28 | 56.50 | 52.13 | 48.84 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 41.54 | 31.12 | 39.30 | 40.02 | 40.42 | 32.09 | 36.91 | 35.32 | 38.19 | 31.88 | 37.61 | 39.40 | 42.61 | 36.82 | 48.72 | 50.10 | 52.72 | 27.22 | 28.26 | 30.70 |
| Cash conversion cycle | days | 62.55 | 76.48 | 78.21 | 79.05 | 71.83 | 79.53 | 79.13 | 79.99 | 74.37 | 80.85 | 82.48 | 83.76 | 80.37 | 96.36 | 96.83 | 89.17 | 67.38 | 76.99 | 74.29 | 67.35 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.43 + 47.65 – 41.54
= 62.55
The provided data illustrates the evolution of GMS Inc's cash conversion cycle (CCC) from July 31, 2020, through April 30, 2025. Over this period, the CCC fluctuated within a range approximately between 62.55 days and 96.83 days.
Initially, in July 2020, the CCC stood at 67.35 days, indicating that, on average, GMS Inc took about 67 days to convert its investments in inventory and receivables back into cash, considering the duration of its payable period. Throughout 2020 and into early 2021, there was a gradual increase, with the cycle reaching a peak of around 96.99 days in January 2022, reflecting potential delays in receivables collection, increased inventory turnover times, or a more extended payables period.
From mid-2022 onwards, the CCC demonstrated a downward trend, indicating improving efficiency in working capital management. Notably, by April 2023, the CCC had decreased to approximately 74.37 days, and the decline continued into 2024, reaching as low as 62.55 days in April 2025. This suggests enhanced operational efficiency, possibly through faster receivables collection, improved inventory turnover, or a strategy to extend payables without negatively impacting supplier relationships.
Throughout the analyzed period, the CCC displays cyclical variations but shows an overarching trend of reduction from its peaks, signifying organizational efforts towards optimizing working capital and cash management. The fluctuations reflect dynamic adjustments in operational processes, financial policies, or industry conditions affecting inventory, receivables, and payables management.
In essence, GMS Inc's cash conversion cycle has experienced periods of elongation and contraction but has generally moved towards a shorter cycle over time, indicating improved liquidity and operational efficiency, especially in recent periods.
Peer comparison
Apr 30, 2025