GameStop Corp (GME)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,709,100 | 3,978,600 | 4,033,900 | 4,555,100 | 4,555,100 |
| Inventory | US$ in thousands | 480,200 | 632,500 | 632,500 | 682,900 | 682,900 |
| Inventory turnover | 5.64 | 6.29 | 6.38 | 6.67 | 6.67 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,709,100K ÷ $480,200K
= 5.64
The inventory turnover ratio for GameStop Corp has been relatively stable over the past few years, ranging from 5.64 to 6.67. This indicates that, on average, the company is able to sell and replace its inventory multiple times throughout the year. A higher inventory turnover ratio generally indicates efficient inventory management and a shorter time for inventory to be converted into sales. However, a slight decrease in the ratio from 6.67 in January 2023 to 5.64 in January 2025 suggests a potential slowdown in inventory turnover, which may warrant further investigation into the company's inventory management practices. Overall, GameStop Corp's inventory turnover ratio demonstrates a reasonable level of efficiency in managing its inventory.