GameStop Corp (GME)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,272,800 | 5,705,600 | 5,813,700 | 5,785,900 | 5,927,200 | 5,954,700 | 6,064,900 | 6,112,300 | 6,010,700 | 5,878,900 | 5,587,000 | 5,345,600 | 5,089,800 | 5,161,800 | 5,595,600 | 5,939,300 | 6,466,000 | 7,334,900 | 7,831,800 | 8,047,200 |
| Total current assets | US$ in thousands | 1,974,200 | 2,376,800 | 2,005,200 | 2,254,600 | 2,323,700 | 2,581,800 | 2,019,200 | 2,329,600 | 2,598,800 | 2,913,100 | 2,657,000 | 1,657,200 | 1,551,200 | 1,651,900 | 1,379,900 | 1,419,900 | 1,633,700 | 1,863,100 | 1,667,600 | 1,920,100 |
| Total current liabilities | US$ in thousands | 934,500 | 1,437,800 | 1,071,400 | 1,319,500 | 1,339,100 | 1,588,700 | 932,400 | 1,126,900 | 1,354,700 | 1,533,300 | 1,194,300 | 1,217,900 | 1,342,700 | 1,576,700 | 1,312,200 | 1,519,700 | 1,237,700 | 1,573,500 | 1,216,800 | 1,297,300 |
| Working capital turnover | 5.07 | 6.08 | 6.23 | 6.19 | 6.02 | 6.00 | 5.58 | 5.08 | 4.83 | 4.26 | 3.82 | 12.17 | 24.41 | 68.64 | 82.65 | — | 16.33 | 25.33 | 17.37 | 12.92 |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,272,800K ÷ ($1,974,200K – $934,500K)
= 5.07
The working capital turnover ratio for GameStop Corp has fluctuated over the past few years, indicating the efficiency of the company in managing its working capital to generate sales.
From February 2019 to July 2020, the working capital turnover ratio increased steadily, reaching a peak of 82.65 in May 2020, suggesting that the company was effectively utilizing its working capital to generate revenue. This rapid increase in efficiency could be attributed to improved inventory management, accounts receivable collection, and accounts payable practices during this period.
However, the ratio dropped significantly in July 2020 to 16.33 and continued to fluctuate in the subsequent periods. This decline may indicate challenges or changes in the company's operational efficiency and management of working capital. It's essential for stakeholders to closely monitor these fluctuations to understand the underlying factors affecting GameStop Corp's working capital turnover and its impact on the company's overall financial performance.