GameStop Corp (GME)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.14% | 24.54% | 23.50% | 23.15% | 23.15% |
| Operating profit margin | -0.43% | -0.65% | -0.65% | -5.21% | -5.26% |
| Pretax margin | 3.59% | 0.25% | 0.25% | -5.10% | -5.10% |
| Net profit margin | 3.43% | 0.13% | 0.13% | -5.28% | -5.28% |
Based on the provided data for GameStop Corp, the profitability ratios reveal the following trends:
1. Gross Profit Margin:
- The Gross Profit Margin has shown a modest improvement over the years, increasing from 23.15% in January 2023 to 29.14% in January 2025. This indicates an increase in the percentage of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The Operating Profit Margin has been negative in the initial years (-5.26% in January 2023) but showed some enhancement, reaching -0.43% in January 2025. This implies that the company is slowly reducing its operating losses over time.
3. Pretax Margin:
- The Pretax Margin was negative in January 2023 but turned positive in the subsequent years, reaching 3.59% in January 2025. This signifies that GameStop Corp has been able to generate pre-tax profits as a percentage of its revenue.
4. Net Profit Margin:
- The Net Profit Margin also experienced a shift from negative values to positive values, with an increase from -5.28% in January 2023 to 3.43% in January 2025. This demonstrates the company's ability to improve its bottom line profitability by efficiently managing its expenses and generating net income.
Overall, GameStop Corp has shown signs of improving profitability as seen through the increasing margins over the years, reflecting better cost control and operational efficiency. However, it is essential for the company to sustain this positive trend in order to ensure long-term financial health and growth.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.28% | -1.27% | -1.27% | -9.92% | -10.01% |
| Return on assets (ROA) | 2.23% | 0.25% | 0.25% | -10.06% | -10.06% |
| Return on total capital | -0.33% | -2.54% | -2.37% | -22.85% | -23.06% |
| Return on equity (ROE) | 2.66% | 0.50% | 0.50% | -23.68% | -23.68% |
Based on the provided data on GameStop Corp's profitability ratios, the company's performance has shown some fluctuations over the years.
1. Operating Return on Assets (Operating ROA): GameStop's Operating ROA has been negative in each of the periods reported, with the latest figure standing at -0.28%. This indicates that the company's core operations are not generating sufficient profits relative to its total assets.
2. Return on Assets (ROA): The ROA for GameStop has also been negative in the earlier years but turned positive in the last two periods, reaching 2.23% as of January 31, 2025. This suggests that the company has been able to generate some profits relative to its total assets in recent years.
3. Return on Total Capital: GameStop's Return on Total Capital has been negative throughout the reported periods, with the latest figure standing at -0.33%. This ratio indicates the company's ability to generate profits from both equity and debt capital employed in its operations.
4. Return on Equity (ROE): Similar to ROA, GameStop's ROE was negative in the earlier years but turned positive in the last two periods, reaching 2.66% as of January 31, 2025. ROE reflects the company's ability to generate profits for its shareholders based on their invested equity.
Overall, GameStop has shown a mixed performance in terms of profitability ratios, with improvements in ROA and ROE in recent periods, although the company still faces challenges in generating returns relative to its assets and total capital. It will be crucial for GameStop to continue monitoring and improving these ratios to enhance its overall profitability and shareholder value.