GameStop Corp (GME)
Payables 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 |
| Payables | US$ in thousands | 324,000 | 812,700 | 378,000 | 561,400 | 531,300 | 888,400 | 217,400 | 386,800 | 471,000 | 711,500 | 409,700 | 388,600 | 341,800 | 440,200 | 256,400 | 212,100 | 380,800 | 709,900 | 368,300 | 458,400 |
| Payables turnover | 12.28 | 5.33 | 11.72 | 7.88 | 8.57 | 5.30 | 22.02 | 12.40 | 9.90 | 6.27 | 10.28 | 10.39 | 11.21 | 8.53 | 15.69 | 19.89 | 11.97 | 7.43 | 15.35 | 12.65 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,978,600K ÷ $324,000K
= 12.28
The payables turnover ratio for GameStop Corp has shown fluctuation over the past few years, indicating changes in the company's payment terms with its suppliers. The ratio was highest at 22.02 in July 2022, suggesting that GameStop was able to pay off its accounts payable obligations more than 22 times during that period.
On the other hand, the lowest ratio of 5.30 in October 2022 implies a slower rate of paying its suppliers during that particular period. Generally, a higher payables turnover ratio indicates that GameStop is managing its accounts payable effectively by paying off its suppliers more quickly, while a lower ratio may signify potential liquidity or operational challenges.
It is important for GameStop to strike a balance in managing its payables turnover ratio to maintain good relationships with suppliers while also optimizing its working capital and cash flow. Monitoring this ratio over time can provide valuable insights into the company's financial health and efficiency in managing its payables.