GameStop Corp (GME)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,978,600 | 4,555,100 | 4,662,900 | 3,830,300 | 4,557,300 |
| Payables | US$ in thousands | 324,000 | 531,300 | 471,000 | 341,800 | 380,800 |
| Payables turnover | 12.28 | 8.57 | 9.90 | 11.21 | 11.97 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,978,600K ÷ $324,000K
= 12.28
GameStop Corp's payables turnover ratio measures how efficiently the company is managing its accounts payable. The trend of the payables turnover ratio over the past five years shows fluctuations.
In fiscal year 2024, GameStop Corp's payables turnover ratio was 12.28. This indicates that, on average, the company paid off its accounts payable 12.28 times during the year. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could be a sign of strong liquidity or effective working capital management.
Comparing this to the prior years, in fiscal year 2023, the payables turnover ratio was 8.57, which indicates a decrease in the speed at which GameStop is paying its suppliers. However, in fiscal year 2022 and 2021, the payables turnover improved to 9.90 and 11.21 respectively, showing an increase in efficiency in managing accounts payable. In fiscal year 2020, the ratio was 11.97, demonstrating a similar level of efficiency as in 2021.
Overall, GameStop Corp's payables turnover has shown variability over the years, with fluctuations in efficiency in managing its accounts payable. It is important for the company to monitor and manage this ratio to ensure optimal use of its working capital and maintain good relationships with its suppliers.