GameStop Corp (GME)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.64 | 6.29 | 6.38 | 6.67 | 6.67 |
| Receivables turnover | — | 57.94 | — | — | 38.51 |
| Payables turnover | — | 12.28 | — | — | 8.57 |
| Working capital turnover | 0.82 | 5.07 | 5.07 | 6.02 | 6.02 |
Based on the provided data, let's analyze the activity ratios of GameStop Corp:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. In this case, GameStop's inventory turnover has remained relatively consistent over the years, ranging from 5.64 to 6.67. This indicates that GameStop is selling and replenishing its inventory at a steady pace.
2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly a company collects its accounts receivable. It appears that GameStop did not report receivables turnover for some periods, but when reported, the values were notably high, such as 38.51 and 57.94. This suggests that GameStop efficiently collects payments from its customers.
3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers. Similar to receivables turnover, GameStop did not provide data for some periods. However, the reported payables turnover of 8.57 and 12.28 indicates that GameStop is managing its payables effectively by either extending payment terms or negotiating favorable credit arrangements with suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively a company is utilizing its working capital to generate sales. The decreasing trend in GameStop's working capital turnover from 6.02 to 0.82 suggests a decline in efficiency in utilizing its working capital to generate revenue. This may indicate potential liquidity challenges or inefficiencies in managing working capital.
Overall, the analysis of GameStop's activity ratios highlights its efficiency in managing inventory and collecting receivables. However, the decreasing trend in working capital turnover warrants further investigation to understand the underlying factors impacting the company's operational efficiency and financial performance.
Average number of days
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.70 | 58.03 | 57.23 | 54.72 | 54.72 |
| Days of sales outstanding (DSO) | days | — | 6.30 | — | — | 9.48 |
| Number of days of payables | days | — | 29.72 | — | — | 42.57 |
Based on the provided data, let's analyze the activity ratios of GameStop Corp:
1. Days of Inventory on Hand (DOH):
- In January 2023 and January 2024, GameStop had a consistent DOH of 54.72 days.
- There was a slight increase in inventory holding period to 57.23 days by January 2024, followed by a further increase to 58.03 days by February 2024.
- By January 2025, GameStop's inventory holding period had increased to 64.70 days, indicating a longer time taken to sell inventory.
2. Days of Sales Outstanding (DSO):
- In January 2023, GameStop had a DSO of 9.48 days, implying a relatively quick collection of accounts receivable.
- The DSO was not reported for January 31, 2023, January 31, 2024, and January 31, 2025.
- The DSO decreased to 6.30 days by February 3, 2024, indicating an improvement in collecting receivables efficiency.
3. Number of Days of Payables:
- GameStop had a payable period of 42.57 days on January 28, 2023, representing the time taken to pay its suppliers.
- The payable period was not reported for January 31, 2023, January 31, 2024, and January 31, 2025.
- By February 3, 2024, the payable period decreased to 29.72 days, suggesting a faster payment cycle to suppliers.
Overall, based on the available data, GameStop Corp's inventory holding period has been increasing over the years, while there have been fluctuations in the collection of accounts receivable and payables. Monitoring these activity ratios is crucial for understanding the efficiency of GameStop's operations and management of working capital.
See also:
Long-term
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 55.56 | — | 8.50 | 43.42 |
| Total asset turnover | 0.65 | 1.95 | 1.95 | 1.90 | 1.90 |
The Fixed Asset Turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher ratio indicates better efficiency. GameStop Corp's Fixed Asset Turnover ratio has shown significant fluctuations over the years. In January 2023, the ratio was 43.42, suggesting high efficiency in generating revenue from its fixed assets. However, by January 2024, the ratio dropped to not available (N/A), indicating a lack of data or potentially lower efficiency in asset utilization. The ratio bounced back to 55.56 by February 2024, highlighting an improvement in asset utilization.
On the other hand, the Total Asset Turnover ratio assesses the company's overall efficiency in generating sales from all assets. A higher ratio signifies better asset utilization. GameStop Corp's Total Asset Turnover ratio has remained relatively stable over the years. It was 1.90 in both January 2023 and February 3, 2024, indicating consistent efficiency in generating revenue from total assets. However, there was a significant drop in the ratio to 0.65 by January 31, 2025, which suggests a decline in the company's ability to generate sales from its total assets.
Overall, the analysis of GameStop Corp's long-term activity ratios reveals fluctuations in fixed asset turnover and a decline in total asset turnover. The company may need to focus on optimizing its asset utilization to improve efficiency and generate more revenue from its assets in the future.