GameStop Corp (GME)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,272,800 | 5,927,200 | 6,010,700 | 5,089,800 | 6,466,000 |
| Property, plant and equipment | US$ in thousands | 94,900 | 136,500 | 163,600 | 201,200 | 275,900 |
| Fixed asset turnover | 55.56 | 43.42 | 36.74 | 25.30 | 23.44 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,272,800K ÷ $94,900K
= 55.56
The fixed asset turnover ratio for GameStop Corp has shown a consistent upward trend over the past five years. It has increased from 23.44 in February 2020 to 55.56 in February 2024. This indicates that the company is generating a higher level of revenue relative to its investment in fixed assets.
The significant improvement in the fixed asset turnover ratio over the years suggests that GameStop Corp has been able to efficiently utilize its fixed assets to generate sales. This could be a result of better asset management, improved operational efficiency, or strategic investments in technology and infrastructure.
A higher fixed asset turnover ratio is generally considered favorable, as it means the company is generating more revenue per dollar invested in fixed assets. However, it is important for investors to analyze other financial metrics and qualitative factors to get a more comprehensive understanding of the overall financial health and performance of GameStop Corp.