GameStop Corp (GME)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	63.12	—	—	52.58	—	77.57	—	57.69	—	37.27	—	38.60	—	70.50	—	—
Payables turnover	—	—	—	—	13.40	—	—	4.26	—	11.86	—	9.44	—	8.23	—	4.14	—	26.15	—	—
Working capital turnover	0.82	0.96	1.28	5.38	5.52	4.92	4.78	4.94	5.14	6.28	7.41	7.35	6.93	5.82	4.68	4.87	5.43	6.46	5.97	5.71

Based on the provided data, let's analyze GameStop Corp's activity ratios:

1. Inventory Turnover:
- GameStop's inventory turnover ratio has fluctuated over the periods, ranging from 3.09 to 7.74, indicating the number of times inventory is sold and replaced during the year. Higher turnover ratios suggest efficient inventory management. GameStop experienced a peak turnover in July 2022 and a low turnover in October 2024.

2. Receivables Turnover:
- The data shows that GameStop's receivables turnover is sporadic, with values available for select periods only. The turnover ratio reflects how efficiently the company collects on credit sales. GameStop's turnover ratio varies significantly between periods, potentially reflecting changes in credit policies.

3. Payables Turnover:
- GameStop's payables turnover ratio also shows inconsistency, reflecting how quickly the company pays its suppliers. The data indicates fluctuations in payment behavior over time, which may impact relationships with suppliers and cash flow management.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company uses working capital to generate sales. GameStop's working capital turnover ratio has been relatively stable, with values ranging from 0.82 to 7.41. A higher turnover ratio indicates efficient utilization of working capital to drive sales.

In conclusion, while GameStop's activity ratios have shown fluctuation and variability over the periods analyzed, it is essential for the company to focus on maintaining efficient inventory management, improving receivables turnover, optimizing payables turnover, and effectively utilizing working capital to support its operational activities and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	64.70	95.76	51.94	58.97	53.17	60.35	112.66	107.67	68.34	55.10	51.79	52.33	47.54	57.04	118.07	112.14	57.51	47.18	57.65	58.52
Days of sales outstanding (DSO)	days	—	—	—	—	5.78	—	—	6.94	—	4.71	—	6.33	—	9.79	—	9.46	—	5.18	—	—
Number of days of payables	days	—	—	—	—	27.24	—	—	85.68	—	30.77	—	38.68	—	44.38	—	88.06	—	13.96	—	—

Based on the provided data for GameStop Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand measures how many days, on average, it takes for a company to sell its inventory.
- GameStop's DOH fluctuated over the periods, ranging from a low of 47.18 days to a high of 118.07 days.
- A decrease in DOH indicates that GameStop managed its inventory more efficiently, while an increase suggests potential overstocking or slower sales.
- GameStop experienced significant fluctuations in DOH, indicating possible challenges in managing inventory levels effectively.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding ratio indicates how long it takes for GameStop to collect its accounts receivable.
- The data shows that DSO varied over the periods, with values ranging from 4.71 days to 9.79 days.
- A lower DSO is generally favorable as it signifies quicker collection of receivables, while a higher DSO may indicate credit collection issues or slower payments from customers.
- GameStop's DSO exhibited fluctuations, suggesting potential changes in customer payment behavior or credit policies.

3. Number of Days of Payables:
- The Number of Days of Payables ratio reflects how long GameStop takes to pay its suppliers.
- The data shows that the Days of Payables varied from 13.96 days to 88.06 days.
- A decrease in the Days of Payables could indicate improved bargaining power with suppliers, while an increase may suggest liquidity constraints or delayed payments.
- GameStop's Days of Payables fluctuated, indicating changes in vendor payment practices or liquidity management.

In conclusion, analyzing these activity ratios provides insight into GameStop's inventory management, accounts receivable collection efficiency, and payment practices. Fluctuations in these ratios over time may highlight operational challenges or strategic shifts within the company.

Long-term

	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
Fixed asset turnover	—	—	—	—	60.52	—	6.55	40.55	40.25	49.16	56.04	55.63	9.79	42.02	33.54	34.92	40.22	47.84	45.63	43.40
Total asset turnover	0.65	0.69	0.95	2.14	2.12	1.80	1.42	1.48	1.71	2.09	2.26	2.24	2.19	1.84	1.40	1.46	2.11	2.51	2.30	2.03

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. Looking at GameStop Corp's fixed asset turnover ratio over the past few years, we observe a fluctuating trend. The ratio started at 43.40 in January 2022 and steadily increased to a peak of 56.04 in April 30, 2023, indicating improved efficiency in utilizing fixed assets. However, there was a significant drop in the ratio to 6.55 in October 31, 2023, suggesting a potential decrease in the company's ability to generate sales from its fixed assets. As of January 31, 2024, the ratio was not available, possibly due to missing data.

Moreover, the total asset turnover ratio reflects GameStop's overall efficiency in generating sales from all its assets. The ratio increased from 2.03 in January 31, 2022, reaching a peak of 2.30 in April 30, 2022, before declining to 0.65 by January 31, 2025. The downward trend in the total asset turnover ratio suggests a potential decline in the company's ability to utilize its total assets to generate revenue efficiently.

In conclusion, the analysis of GameStop Corp's long-term activity ratios indicates mixed efficiency in utilizing fixed assets and total assets to generate revenue over the years, with some periods of improvement and others showing a decline.