GameStop Corp (GME)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -16,500 | -34,500 | -34,500 | -308,900 | -311,600 |
| Total assets | US$ in thousands | 5,875,400 | 2,709,000 | 2,709,000 | 3,113,400 | 3,113,400 |
| Operating ROA | -0.28% | -1.27% | -1.27% | -9.92% | -10.01% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $-16,500K ÷ $5,875,400K
= -0.28%
Operating ROA is a key financial ratio that measures a company's ability to generate profits from its operational assets. Looking at GameStop Corp's operating ROA over the past few years, we can see a trend of improvement.
In January 2023, the operating ROA was -10.01%, indicating that the company was experiencing a significant loss in operating profitability relative to its assets. However, by January 2025, the operating ROA had improved to -0.28%, moving closer to breakeven and showing signs of progress.
Although GameStop Corp is still not achieving a positive operating ROA, the trend of improvement suggests that the company may be taking steps to enhance operational efficiency and profitability. Monitoring this ratio in future periods will be important to assess whether GameStop Corp can achieve positive operating returns on its assets.