GameStop Corp (GME)
Inventory turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,709,100 | 3,164,300 | 3,935,600 | 4,182,600 | 4,341,800 | 3,825,300 | 3,308,800 | 3,462,100 | 3,615,400 | 4,484,100 | 5,352,800 | 5,297,800 | 5,242,800 | 4,370,000 | 3,497,200 | 3,682,300 | 4,663,200 | 5,685,100 | 5,809,300 | 5,707,400 |
| Inventory | US$ in thousands | 480,200 | 830,200 | 560,000 | 675,800 | 632,500 | 632,500 | 1,021,300 | 1,021,300 | 676,900 | 676,900 | 759,500 | 759,500 | 682,900 | 682,900 | 1,131,300 | 1,131,300 | 734,800 | 734,800 | 917,600 | 915,000 |
| Inventory turnover | 5.64 | 3.81 | 7.03 | 6.19 | 6.86 | 6.05 | 3.24 | 3.39 | 5.34 | 6.62 | 7.05 | 6.98 | 7.68 | 6.40 | 3.09 | 3.25 | 6.35 | 7.74 | 6.33 | 6.24 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,709,100K ÷ $480,200K
= 5.64
The inventory turnover ratio for GameStop Corp fluctuated over the period analyzed. The company's inventory turnover ranged from a low of 3.09 on October 31, 2022, to a high of 7.74 on July 30, 2022. This indicates the number of times GameStop Corp sold and replaced its inventory during the specified periods.
Overall, GameStop Corp's inventory turnover has shown some variability but has generally stayed within a moderate range, suggesting that the company has been efficient in managing its inventory levels. A higher inventory turnover ratio typically indicates that the company is selling its products quickly and efficiently, which is a positive sign for financial performance.
It is important for GameStop Corp to continue monitoring its inventory turnover ratio to ensure optimal inventory management, as improvements in this ratio can lead to better cash flow management and higher profitability. Additionally, analyzing industry benchmarks and trends can provide further insights into the company's competitiveness and operational efficiency.