GameStop Corp (GME)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -34,500 | -43,500 | -125,100 | -216,300 | -311,600 | -524,600 | -531,200 | -481,400 | -368,500 | -182,900 | -143,000 | -170,600 | -237,800 | -181,400 | -164,000 | -525,100 | -399,600 | -706,900 | -1,179,200 | -731,000 |
| Total assets | US$ in thousands | 2,709,000 | 3,146,900 | 2,803,700 | 3,070,200 | 3,113,400 | 3,322,500 | 2,799,500 | 3,125,500 | 3,499,300 | 3,762,000 | 3,545,800 | 2,562,700 | 2,472,600 | 2,601,400 | 2,375,200 | 2,469,000 | 2,819,700 | 3,145,600 | 2,987,900 | 3,633,300 |
| Operating ROA | -1.27% | -1.38% | -4.46% | -7.05% | -10.01% | -15.79% | -18.97% | -15.40% | -10.53% | -4.86% | -4.03% | -6.66% | -9.62% | -6.97% | -6.90% | -21.27% | -14.17% | -22.47% | -39.47% | -20.12% |
February 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-34,500K ÷ $2,709,000K
= -1.27%
Operating return on assets (ROA) is an important financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. A higher operating ROA indicates better operational efficiency and asset utilization.
Based on the data provided for GameStop Corp over multiple reporting periods, the trend in operating ROA shows consistent negative values, indicating challenges in generating profits from its core business operations in relation to its asset base. The operating ROA ranged from -1.27% to -39.47% during the periods analyzed.
The negative operating ROA values suggest that GameStop Corp may be facing difficulties in effectively utilizing its assets to generate profits from its primary operations. This could be attributed to various factors such as declining sales, increasing operating expenses, or inefficiencies in asset management.
Overall, the consistent negative operating ROA trend over the periods analyzed indicates that GameStop Corp needs to focus on improving its operational efficiency and asset utilization to enhance its profitability and financial performance in the future.