GameStop Corp (GME)
Total asset turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,823,000 | 5,272,800 | 5,272,800 | 5,927,200 | 5,927,200 |
| Total assets | US$ in thousands | 5,875,400 | 2,709,000 | 2,709,000 | 3,113,400 | 3,113,400 |
| Total asset turnover | 0.65 | 1.95 | 1.95 | 1.90 | 1.90 |
January 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,823,000K ÷ $5,875,400K
= 0.65
The total asset turnover ratio measures a company's ability to generate revenue from its assets. In the case of GameStop Corp, the total asset turnover ratio remained relatively stable at 1.90 for the fiscal years ending January 28, 2023, and January 31, 2023. It then increased slightly to 1.95 for the fiscal years ending January 31, 2024, and February 3, 2024. This suggests that GameStop is efficiently using its assets to generate revenue during these periods.
However, there was a significant drop in the total asset turnover ratio to 0.65 for the fiscal year ending January 31, 2025. This sharp decline may indicate inefficiencies in asset utilization or a decrease in revenue generation relative to the size of the assets. It could be a sign that GameStop's operating performance or asset management deteriorated during this period.
Overall, the trend in GameStop's total asset turnover ratio shows fluctuations in efficiency in generating revenue from its assets over the years, with a notable decrease in the most recent fiscal year ending January 31, 2025.