GameStop Corp (GME)
Pretax margin
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 137,200 | 13,100 | 13,100 | -302,100 | -302,100 |
| Revenue | US$ in thousands | 3,823,000 | 5,272,800 | 5,272,800 | 5,927,200 | 5,927,200 |
| Pretax margin | 3.59% | 0.25% | 0.25% | -5.10% | -5.10% |
January 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $137,200K ÷ $3,823,000K
= 3.59%
GameStop Corp's pretax margin has shown a notable improvement over the years based on the provided data. In January 2023, the pretax margin was -5.10%, indicating a loss before tax. This negative trend persisted until January 31, 2024, still at -5.10%. However, the company managed to turn around its performance in the same fiscal year, as by February 3, 2024, the pretax margin stayed at 0.25%, showing a return to profitability. Continuing this trend, the pretax margin further increased to 3.59% by January 31, 2025, indicating enhanced operational efficiency and profitability for GameStop Corp. The positive pretax margin in the most recent period suggests the company's ability to generate higher operating profits relative to its revenue, a promising sign for its financial performance.