GameStop Corp (GME)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 57.94 | 38.51 | 42.60 | 48.34 | 45.57 | |
| DSO | days | 6.30 | 9.48 | 8.57 | 7.55 | 8.01 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 57.94
= 6.30
Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that a company is collecting payments more quickly, which can be a positive sign of efficiency in managing accounts receivable.
Analyzing GameStop Corp's DSO over the past five years reveals fluctuations in the efficiency of their accounts receivable management. In the most recent fiscal year, ending on February 3, 2024, GameStop improved its DSO to 6.30 days, indicating a more efficient collection process compared to the previous years. This may signify the company's efforts to streamline its credit and collection policies, resulting in quicker cash inflows.
However, it is important to note that compared to January 30, 2021, where GameStop had a DSO of 7.55 days, there was a significant improvement in efficiency. In the subsequent years, GameStop experienced fluctuations in its DSO, with the highest DSO of 9.48 days recorded on January 28, 2023.
Overall, GameStop's decreasing trend in DSO from 2019 to 2024 suggests that the company has been more effective in managing its accounts receivable and collecting payments more promptly. This can have positive implications for the company's cash flow and financial performance.