GameStop Corp (GME)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.70 | 58.03 | 57.23 | 54.72 | 54.72 |
| Days of sales outstanding (DSO) | days | — | 6.30 | — | — | 9.48 |
| Number of days of payables | days | — | 29.72 | — | — | 42.57 |
| Cash conversion cycle | days | 64.70 | 34.60 | 57.23 | 54.72 | 21.62 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 64.70 + — – —
= 64.70
The cash conversion cycle for GameStop Corp has shown fluctuations over the past few years. As of January 28, 2023, the company had a relatively efficient cash conversion cycle of 21.62 days. However, by January 31, 2023, the days required for the company to convert its investments in inventory and other resources into cash increased significantly to 54.72 days.
There was a further increase in the cash conversion cycle to 57.23 days by January 31, 2024, indicating potential challenges in managing working capital effectively. However, by February 3, 2024, GameStop Corp was able to improve its cash conversion cycle to 34.60 days, showing a positive trend in optimizing its operational efficiency.
Unfortunately, by January 31, 2025, the cash conversion cycle extended to 64.70 days, reflecting a prolonged period for the company to convert its resources into cash. Overall, GameStop Corp may need to focus on enhancing its working capital management to shorten its cash conversion cycle and improve its liquidity position in the future.