GameStop Corp (GME)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -34,500 | -311,600 | -368,500 | -237,800 | -399,600 |
| Total assets | US$ in thousands | 2,709,000 | 3,113,400 | 3,499,300 | 2,472,600 | 2,819,700 |
| Operating ROA | -1.27% | -10.01% | -10.53% | -9.62% | -14.17% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-34,500K ÷ $2,709,000K
= -1.27%
Based on the operating return on assets (ROA) data for GameStop Corp over the past five years, the company has shown a pattern of fluctuating performance in terms of generating operating profit relative to its total assets.
The operating ROA has ranged from -14.17% in February 2020 to a low of -10.53% in January 2022. This indicates that the company has struggled to efficiently utilize its assets to generate operating income during these periods.
The most recent data point, showing an operating ROA of -1.27% in February 2024, suggests a slight improvement compared to the previous years. However, it is important to note that a negative operating ROA indicates that the company is experiencing operating losses when considering its asset base.
Overall, the trend of negative operating ROA figures over the past five years highlights the challenges GameStop Corp has faced in effectively leveraging its assets to generate operating profits. Additional analysis of the company's operational efficiency, asset management strategies, and overall financial health would be necessary to provide a more comprehensive assessment of its performance.