GameStop Corp (GME)
Working capital 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 current assets | US$ in thousands | 5,355,000 | 1,974,200 | 1,974,200 | 2,323,700 | 2,323,700 |
| Total current liabilities | US$ in thousands | 665,400 | 934,500 | 934,500 | 1,339,100 | 1,339,100 |
| Working capital turnover | 0.82 | 5.07 | 5.07 | 6.02 | 6.02 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,823,000K ÷ ($5,355,000K – $665,400K)
= 0.82
The working capital turnover for GameStop Corp experienced a consistent level of 6.02 for both January 28, 2023, and January 31, 2023. However, this ratio decreased to 5.07 for January 31, 2024, and remained the same for February 3, 2024. Remarkably, there was a significant decline in the working capital turnover to 0.82 by January 31, 2025. This downward trend indicates that GameStop may be managing its working capital less efficiently, as it takes longer to convert its working capital into sales revenue. Adjustments to optimize working capital management strategies may be necessary to improve the company's operational efficiency and financial performance.