GameStop Corp (GME)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,978,600 | 4,330,800 | 4,429,100 | 4,425,000 | 4,555,100 | 4,704,200 | 4,787,400 | 4,796,100 | 4,662,900 | 4,460,700 | 4,211,100 | 4,038,400 | 3,830,300 | 3,753,600 | 4,022,600 | 4,219,400 | 4,557,300 | 5,274,700 | 5,654,500 | 5,799,000 |
| Inventory | US$ in thousands | 632,500 | 1,021,300 | 676,900 | 759,500 | 682,900 | 1,131,300 | 734,800 | 917,600 | 915,000 | 1,140,900 | 596,400 | 570,900 | 602,500 | 861,000 | 474,600 | 654,700 | 859,700 | 1,286,700 | 948,900 | 1,149,100 |
| Inventory turnover | 6.29 | 4.24 | 6.54 | 5.83 | 6.67 | 4.16 | 6.52 | 5.23 | 5.10 | 3.91 | 7.06 | 7.07 | 6.36 | 4.36 | 8.48 | 6.44 | 5.30 | 4.10 | 5.96 | 5.05 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,978,600K ÷ $632,500K
= 6.29
The inventory turnover ratio for GameStop Corp has shown fluctuations over the past several periods, ranging from a low of 3.91 to a high of 8.48. A higher inventory turnover ratio indicates that the company is selling its merchandise more quickly, which is generally viewed as a positive sign of efficiency. GameStop's inventory turnover ratio has exhibited a generally upward trend over the periods analyzed, with some minor fluctuations along the way.
The average inventory turnover ratio for GameStop Corp over the periods analyzed is approximately 5.90, indicating that, on average, the company is selling and replacing its inventory nearly 6 times per year. This suggests that GameStop has been managing its inventory effectively, ensuring a balance between stocking enough inventory to meet demand without holding excess stock that could lead to potential write-offs or obsolescence.
Overall, the trend in GameStop Corp's inventory turnover ratio signals a level of efficiency in managing its inventory and indicates a positive aspect of its operational performance in recent periods. However, it is important for investors and analysts to continue monitoring this ratio along with other financial metrics to form a comprehensive assessment of the company's financial health and operational efficiency.