GameStop Corp (GME)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 57.94 | 64.62 | 76.90 | 48.54 | 38.51 | 47.52 | 60.89 | 59.11 | 42.60 | 70.49 | 81.56 | 52.36 | 48.34 | 66.52 | 67.34 | 68.50 | 45.57 | 50.34 | 63.99 | 63.87 | |
| DSO | days | 6.30 | 5.65 | 4.75 | 7.52 | 9.48 | 7.68 | 5.99 | 6.17 | 8.57 | 5.18 | 4.48 | 6.97 | 7.55 | 5.49 | 5.42 | 5.33 | 8.01 | 7.25 | 5.70 | 5.72 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 57.94
= 6.30
The days of sales outstanding (DSO) for GameStop Corp have fluctuated over the past few quarters, indicating variability in the company's ability to collect its accounts receivables efficiently.
The DSO metric measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO value is generally favorable as it indicates faster collections and better liquidity management. Conversely, a higher DSO value may signify potential issues with credit policies, collection processes, or customer payment behavior.
In the most recent quarter, GameStop Corp reported a DSO of 6.30 days, which was slightly higher compared to the preceding quarter's DSO of 5.65 days. This increase could be a cause for concern as it suggests a slower collection of receivables, potentially impacting the company's cash flow and working capital efficiency.
Looking back at historical trends, GameStop Corp's DSO has shown some variability, ranging from a low of 4.48 days to a high of 9.48 days over the past few quarters. The fluctuations in DSO could be influenced by various factors such as changes in customer payment behavior, seasonal sales patterns, or shifts in the company's credit policies.
Overall, GameStop Corp should continue monitoring its DSO closely and implement strategies to improve collections efficiency, such as tightening credit terms, enhancing collection processes, and managing customer credit risk effectively. Maintaining a stable and low DSO level is crucial for ensuring strong cash flow and operational liquidity in the long term.
See also:
GameStop Corp Average Receivable Collection Period (Quarterly Data)