GameStop Corp (GME)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.54% | 23.15% | 22.42% | 24.75% | 29.52% |
| Operating profit margin | -0.65% | -5.26% | -6.13% | -4.67% | -6.18% |
| Pretax margin | 0.25% | -5.10% | -6.58% | -5.32% | -6.70% |
| Net profit margin | 0.13% | -5.28% | -6.34% | -4.23% | -7.28% |
GameStop Corp's profitability ratios have shown mixed performance over the last five years. The gross profit margin has fluctuated between 22.42% to 29.52%, with the latest figure standing at 24.54%. This indicates the company's ability to generate profit after accounting for the cost of goods sold.
On the other hand, the operating profit margin has been negative in recent years, with the most recent figure at -0.65%. This suggests that GameStop has been facing challenges in controlling its operating expenses relative to its revenue.
The pretax margin and net profit margin have also displayed variability. The pretax margin improved slightly in 2024 to 0.25% compared to negative figures in the previous years. Similarly, the net profit margin has shown improvement from -7.28% in 2020 to 0.13% in 2024, indicating a positive trend in the company's bottom line profitability.
Overall, GameStop's profitability ratios reflect a mix of strengths and weaknesses, with the company making progress in improving its net profit margin but still facing operational challenges as evidenced by its negative operating profit margin.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.27% | -10.01% | -10.53% | -9.62% | -14.17% |
| Return on assets (ROA) | 0.25% | -10.06% | -10.90% | -8.71% | -16.70% |
| Return on total capital | -2.54% | -23.06% | -22.43% | -36.54% | -39.38% |
| Return on equity (ROE) | 0.50% | -23.68% | -23.79% | -49.30% | -77.01% |
GameStop Corp's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) has fluctuated between -1.27% and -14.17%, with the latest figure standing at -1.27%. This ratio indicates the company's ability to generate profits from its asset base, and the negative values suggest a historical struggle in this aspect.
In terms of the return on assets (ROA), GameStop has shown improvement from the negative figures in previous years to a positive figure of 0.25% in the latest period. However, the return on assets still remains relatively low, indicating that the company's profitability relative to its total assets is modest.
The return on total capital has also shown variability, ranging from -2.54% to -39.38% over the past five years. The latest return on total capital stands at -2.54%, which indicates that the company is facing challenges in generating sufficient profits in relation to its total capital employed.
Lastly, the return on equity (ROE) has improved to 0.50% in the latest year from significantly negative values in the past. This ratio signifies the return generated for the shareholders' equity investment and reflects a modest profitability level relative to the equity capital contributed by the shareholders.
Overall, GameStop Corp's profitability ratios suggest a mixed performance with recent improvements in some aspects, but the company still faces challenges in generating satisfactory returns for its assets, capital, and equity investors.