Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
GameStop Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
- Inventory Turnover
- The inventory turnover ratio shows variability over the periods analyzed, ranging from a low of approximately 3.91 to a high of about 8.48. There is no consistent upward or downward trend, although notable fluctuations occur. Peaks in turnover, such as in August 2020, suggest periods of accelerated inventory movement, whereas troughs indicate slower turnover. Overall, the data reflects a cyclical pattern with intermittent improvements in inventory management efficiency.
- Receivables Turnover
- Receivables turnover demonstrates considerable fluctuation across the timeline. Starting at mid-60s ratios, it drops to the low 40s and even 30s in some quarters, then climbs back up to over 80 in certain quarters such as July 2021 and October 2023. This inconsistency may point to varying effectiveness in collecting receivables, impacting cash flow predictability. Periods of lower turnover suggest extended credit collection times, while higher values indicate more efficient collections.
- Payables Turnover
- The payables turnover ratio experiences considerable swings, ranging from about 5.3 to a peak exceeding 22. The higher ratios represent quicker payment to suppliers, whereas lower rates imply elongated payment terms or delayed payables. Several quarters show significant increases, such as in November 2019 and October 2022, suggesting episodic acceleration in payment cycles. The volatility of the payables turnover ratio reflects management’s shifting approach to supplier payments over time.
- Working Capital Turnover
- The working capital turnover ratio reflects a highly erratic pattern. It increases sharply up to 82.65 in August 2020, an outlier by far when compared to other periods. Most other values fluctuate between roughly 3.82 and 25.33, with a general tendency to decrease after peaks. The outlier peak may indicate a temporary or one-time operational efficiency or financial strategy that substantially improved the use of working capital during that quarter. Other periods show moderate turnover levels, hinting at overall variable efficiency in working capital utilization.
- Average Inventory Processing Period
- This metric fluctuates between faster processing periods near 43 days to slower ones approaching 93 days. Periods with lower days indicate quicker inventory turnover, while higher days suggest slower inventory movement, possibly due to stock accumulation or decreased sales activity. The data reveals cyclical swings rather than a definitive improving or worsening trend, consistent with the inventory turnover observations.
- Average Receivable Collection Period
- The collection period generally remains stable within a range of 4 to 9 days, with minor variations. This stability suggests steady credit and collection policies, maintaining a relatively consistent duration for collecting payments from customers. Shorter periods are typically preferred and are evident in some quarters, such as May 2024, indicating efficient receivables management during those times.
- Operating Cycle
- The operating cycle shows significant variability, oscillating between approximately 48 and 98 days. This metric's fluctuations mirror the inventory processing period and receivables collection trends, as it encompasses both. Longer operating cycles indicate slower asset conversion into cash, which can constrain liquidity, while shorter cycles suggest improved operational efficiency. The data reflects an absence of consistent trend, with the operating cycle responding dynamically to operational changes.
- Average Payables Payment Period
- The average payables payment period varies widely from around 17 to 69 days. Longer payment periods indicate extended financing from suppliers, potentially benefiting cash flow, while shorter periods reflect quicker settlement of obligations. The fluctuations suggest a flexible creditor payment approach, possibly adjusted in response to cash flow needs or negotiating power with suppliers.
- Cash Conversion Cycle
- The cash conversion cycle remains generally between 18 and 49 days, with a few quarters reaching the higher 40s. This cycle measures liquidity impacts of working capital elements, combining inventory, receivables, and payables periods. Relatively moderate and stable values suggest consistent management of cash flow from operations, despite the variability seen in other components. Shorter cycles are preferable as they denote quicker cash recovery, and the data indicates mixed performance in this regard over time.
Turnover Ratios
Average No. Days
Inventory Turnover
GameStop Corp., inventory turnover calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Cost of sales | 637,300) | 1,374,400) | 796,500) | 857,900) | 949,800) | 1,726,600) | 894,800) | 853,800) | 1,079,900) | 1,875,700) | 978,000) | 862,500) | 946,700) | 1,673,500) | 728,400) | 689,800) | 738,600) | 1,596,800) | 997,400) | 886,600) | 1,076,500) | 2,314,200) | 1,377,200) | 1,031,100) | 1,254,700) | ||||||||
| Merchandise inventories, net | 675,800) | 632,500) | 1,021,300) | 676,900) | 759,500) | 682,900) | 1,131,300) | 734,800) | 917,600) | 915,000) | 1,140,900) | 596,400) | 570,900) | 602,500) | 861,000) | 474,600) | 654,700) | 859,700) | 1,286,700) | 948,900) | 1,149,100) | 1,250,500) | 1,881,500) | 1,130,600) | 1,184,500) | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Inventory turnover1 | 5.42 | 6.29 | 4.24 | 6.54 | 5.83 | 6.67 | 4.16 | 6.52 | 5.23 | 5.10 | 3.91 | 7.06 | 7.07 | 6.36 | 4.36 | 8.48 | 6.44 | 5.30 | 4.10 | 5.96 | 5.05 | 4.78 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 9.22 | 9.54 | 8.86 | 9.21 | 9.94 | 9.15 | 8.41 | 8.01 | 8.49 | 8.40 | 7.80 | 7.30 | 7.90 | 8.34 | 8.69 | 10.90 | 10.54 | 9.80 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 4.51 | 4.85 | 4.49 | 4.43 | 4.08 | 4.20 | 4.07 | 3.96 | 4.01 | 4.55 | 4.76 | 5.06 | 4.87 | 5.25 | 5.13 | 5.83 | 4.93 | 5.00 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 3.13 | 3.41 | 3.43 | 3.57 | 3.28 | 3.50 | 3.23 | 3.29 | 3.14 | 3.65 | 3.82 | 3.66 | 3.44 | 3.71 | 3.64 | 3.90 | 3.52 | 3.73 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 6.16 | 6.36 | 4.48 | 5.56 | 5.64 | 6.21 | 4.26 | 5.04 | 5.10 | 5.82 | 4.90 | 6.04 | 5.35 | 5.66 | 5.08 | 6.88 | 5.59 | 6.13 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Merchandise inventories, net
= (637,300 + 1,374,400 + 796,500 + 857,900)
÷ 675,800 = 5.42
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales shows considerable volatility over the reported periods. Initial values fluctuate between approximately 1,000,000 and 2,300,000 thousands of USD, peaking notably in February 2019 and January 2022, with intermediate troughs mostly observed around mid-2020. After these peaks, the amounts generally decrease, with a marked decline in the most recent periods, reaching around 637,300 thousands of USD by May 2024. This pattern suggests alternating periods of increased and decreased operational activity or inventory liquidation efforts.
- Merchandise Inventories, Net
- Net merchandise inventories also demonstrate fluctuations but with an overall gradual decrease across the timeline. Early periods show relatively steady inventory levels around 1,100,000 to 1,800,000 thousands of USD, followed by a notable dip around mid-to-late 2020, coinciding with lower inventories recorded near 470,000 thousands of USD. Post-2020, inventories recover somewhat but remain below initial peaks, fluctuating in the 600,000 to 1,000,000 thousand USD range. This may indicate inventory management adjustments, possibly reflecting efforts to optimize stock amid changing sales patterns.
- Inventory Turnover Ratio
- The inventory turnover ratio evidences cyclical tendencies, with data available from November 2018 onward. The ratio fluctuates between approximately 3.91 and 8.48, indicating variable efficiency in inventory management and sales. Peaks in turnover, such as the 8.48 ratio observed in August 2020, signal periods of rapid stock movement, while lower values near 3.91 suggest slower sales or accumulation of inventory. The pattern of alternating high and low turnover ratios suggests responsiveness to changing market demand or strategic adjustments in inventory practices.
- Overall Insights
- The combined analysis of cost of sales, inventory levels, and turnover ratios reflects a business with significant operational fluctuations over the reported periods. Cost of sales and inventory levels do not follow a uniform trend but rather alternate between expansion and contraction phases. High inventory turnover ratios in certain quarters point to periods of efficient stock clearance, while troughs in this measure and rising inventory levels suggest episodic inventory buildup or slower sales. The recent trends towards lower cost of sales and moderately reduced inventories may indicate a strategic pivot towards leaner operations or a response to evolving market conditions.
Receivables Turnover
GameStop Corp., receivables turnover calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Net sales | 881,800) | 1,793,600) | 1,078,300) | 1,163,800) | 1,237,100) | 2,226,400) | 1,186,400) | 1,136,000) | 1,378,400) | 2,253,900) | 1,296,600) | 1,183,400) | 1,276,800) | 2,122,100) | 1,004,700) | 942,000) | 1,021,000) | 2,194,100) | 1,438,500) | 1,285,700) | 1,547,700) | 3,063,000) | 1,935,400) | 1,501,100) | 1,785,800) | ||||||||
| Receivables, net of allowance | 58,900) | 91,000) | 88,300) | 75,600) | 119,200) | 153,900) | 125,300) | 99,600) | 103,400) | 141,100) | 83,400) | 68,500) | 102,100) | 105,300) | 77,600) | 83,100) | 86,700) | 141,900) | 145,700) | 122,400) | 126,000) | 134,200) | 152,300) | 121,800) | 104,500) | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Receivables turnover1 | 83.49 | 57.94 | 64.62 | 76.90 | 48.54 | 38.51 | 47.52 | 60.89 | 59.11 | 42.60 | 70.49 | 81.56 | 52.36 | 48.34 | 66.52 | 67.34 | 68.50 | 45.57 | 50.34 | 63.99 | 63.87 | 61.74 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | 36.99 | 45.87 | 39.09 | 40.37 | 36.97 | 47.45 | 42.15 | 41.67 | 38.76 | 44.12 | 41.81 | 43.47 | 39.00 | 44.15 | 47.12 | 46.57 | 42.95 | 52.34 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 101.32 | 102.49 | 93.44 | 93.48 | 85.71 | 88.70 | 86.31 | 89.32 | 86.53 | 93.79 | 74.20 | 70.21 | 60.88 | 69.69 | 72.02 | 75.94 | 213.66 | 108.00 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Receivables turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Receivables, net of allowance
= (881,800 + 1,793,600 + 1,078,300 + 1,163,800)
÷ 58,900 = 83.49
2 Click competitor name to see calculations.
The net sales figures indicate considerable fluctuations over the observed periods. Initially, net sales exhibit a pattern of sharp increases and decreases, with notable peaks in early 2019 and early 2020. Subsequent quarters show variability but with some tendency toward higher sales in the first calendar quarters compared to summer and fall quarters. The latest data point records a decline to one of the lowest net sales values in the period analyzed.
Receivables, net of allowance, also present significant variation. Early periods show a general increase, peaking around late 2019 and early 2020. Thereafter, receivables tend to oscillate, with occasional sharp declines and subsequent recoveries. The most recent values reflect a downward trend compared to previous peaks, suggesting tightening in outstanding amounts or improved collections.
The receivables turnover ratio, which measures the efficiency of converting receivables into cash, displays marked variability between quarters. The ratio generally moves inversely relative to the magnitude of receivables on hand, indicating fluctuating efficiency in collections. Some quarters report very high turnover ratios, implying quick collections, while others are significantly lower, pointing to slower collections or higher outstanding balances relative to sales. The highest turnover values appear sporadically, suggesting episodic improvements in receivables management or seasonality effects. Conversely, lower turnover ratios in certain quarters indicate potential collection challenges or increased credit extensions.
- Overall Observations
- Net sales are characterized by high volatility with periodic spikes followed by declines, possibly reflecting seasonality or business cycle impacts.
- Receivables exhibit a pattern of increase followed by erratic swings, indicating inconsistent credit management or changes in customer payment behaviors.
- The receivables turnover ratio fluctuates substantially, mirroring trends in receivables and pointing to variable collection efficiency over time.
- Recent data points suggest a reduction in net sales and receivables alongside improved receivables turnover, implying more effective cash collection despite weakening sales.
Payables Turnover
GameStop Corp., payables turnover calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Cost of sales | 637,300) | 1,374,400) | 796,500) | 857,900) | 949,800) | 1,726,600) | 894,800) | 853,800) | 1,079,900) | 1,875,700) | 978,000) | 862,500) | 946,700) | 1,673,500) | 728,400) | 689,800) | 738,600) | 1,596,800) | 997,400) | 886,600) | 1,076,500) | 2,314,200) | 1,377,200) | 1,031,100) | 1,254,700) | ||||||||
| Accounts payable | 282,700) | 324,000) | 812,700) | 378,000) | 561,400) | 531,300) | 888,400) | 217,400) | 386,800) | 471,000) | 711,500) | 409,700) | 388,600) | 341,800) | 440,200) | 256,400) | 212,100) | 380,800) | 709,900) | 368,300) | 458,400) | 1,051,900) | 1,452,800) | 535,800) | 547,800) | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Payables turnover1 | 12.97 | 12.28 | 5.33 | 11.72 | 7.88 | 8.57 | 5.30 | 22.02 | 12.40 | 9.90 | 6.27 | 10.28 | 10.39 | 11.21 | 8.53 | 15.69 | 19.89 | 11.97 | 7.43 | 15.35 | 12.65 | 5.68 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.70 | 3.46 | 3.78 | 3.84 | 4.24 | 3.59 | 4.14 | 4.22 | 4.34 | 3.63 | 4.22 | 3.91 | 4.03 | 3.46 | 3.76 | 3.98 | 3.93 | 3.22 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 8.04 | 10.13 | 8.92 | 8.51 | 8.20 | 9.14 | 8.43 | 7.19 | 6.59 | 7.45 | 7.32 | 7.47 | 6.44 | 7.52 | 6.42 | 6.73 | 7.35 | 9.33 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 4.86 | 6.61 | 6.07 | 6.02 | 5.39 | 6.16 | 5.22 | 5.03 | 4.59 | 5.65 | 5.62 | 5.28 | 4.52 | 5.51 | 4.48 | 4.18 | 4.63 | 6.42 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 9.41 | 9.83 | 6.85 | 8.26 | 8.43 | 9.53 | 7.11 | 8.74 | 8.16 | 7.77 | 5.97 | 6.96 | 6.17 | 5.09 | 4.13 | 10.64 | 25.79 | 11.17 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Payables turnover
= (Cost of salesQ1 2025
+ Cost of salesQ4 2024
+ Cost of salesQ3 2024
+ Cost of salesQ2 2024)
÷ Accounts payable
= (637,300 + 1,374,400 + 796,500 + 857,900)
÷ 282,700 = 12.97
2 Click competitor name to see calculations.
Analysis of the quarterly financial data indicates variability in key operational metrics over the observed periods. Cost of sales and accounts payable exhibit noticeable fluctuations that reflect changes in operational scale and payment practices.
- Cost of Sales
- The cost of sales figures present a mixed trend with multiple peaks and troughs across the quarters. Starting at approximately 1,254,700 thousand USD in early 2018, there is a significant spike to over 2,314,200 thousand USD in early 2019. Following this peak, the values tend to oscillate, reaching another high around 1,875,700 thousand USD in early 2022. More recently, the cost of sales declined to the trough of 637,300 thousand USD by the latest quarter in mid-2024. This pattern suggests periods of increased sales activity or inventory acquisition activity alternating with contraction phases or seasonality effects.
- Accounts Payable
- Accounts payable show substantial variability, with initial values around 547,800 thousand USD decreasing and then sharply rising to a peak of 1,452,800 thousand USD by late 2018. Afterward, this figure generally trends downward through 2020 with smaller fluctuations, followed by further increases and decreases through 2023, ending near 282,700 thousand USD in the latest reported period. The significant early peak and subsequent decline may reflect timing differences in supplier payments or changes in credit terms over time.
- Payables Turnover Ratio
- The payables turnover ratio displays considerable volatility but remains mostly within a range of 5 to 22 times per year. Notably, the ratio spikes in several quarters, such as achieving values above 15 times in late 2018, late 2019, and late 2022. Lower values appear intermittently, indicating slower payment cycles in those periods. The fluctuation in the turnover ratio suggests changes in the speed at which the company settles its payables, implying variability in cash management and supplier negotiation strategies.
Overall, the data indicate a dynamic operational environment with cyclical or seasonal fluctuations affecting cost of sales and accounts payable levels. The variability in payables turnover highlights changing payment practices, which may have implications for liquidity management. This pattern merits further examination to understand the underlying drivers, such as shifts in sales volume, supplier terms, or inventory management, to optimize working capital and financial stability.
Working Capital Turnover
GameStop Corp., working capital turnover calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Current assets | 1,879,700) | 1,974,200) | 2,376,800) | 2,005,200) | 2,254,600) | 2,323,700) | 2,581,800) | 2,019,200) | 2,329,600) | 2,598,800) | 2,913,100) | 2,657,000) | 1,657,200) | 1,551,200) | 1,651,900) | 1,379,900) | 1,419,900) | 1,633,700) | 1,863,100) | 1,667,600) | 1,920,100) | 3,127,700) | 3,263,000) | 2,324,800) | 2,327,300) | ||||||||
| Less: Current liabilities | 848,300) | 934,500) | 1,437,800) | 1,071,400) | 1,319,500) | 1,339,100) | 1,588,700) | 932,400) | 1,126,900) | 1,354,700) | 1,533,300) | 1,194,300) | 1,217,900) | 1,342,700) | 1,576,700) | 1,312,200) | 1,519,700) | 1,237,700) | 1,573,500) | 1,216,800) | 1,297,300) | 2,181,100) | 2,556,700) | 1,290,800) | 1,229,600) | ||||||||
| Working capital | 1,031,400) | 1,039,700) | 939,000) | 933,800) | 935,100) | 984,600) | 993,100) | 1,086,800) | 1,202,700) | 1,244,100) | 1,379,800) | 1,462,700) | 439,300) | 208,500) | 75,200) | 67,700) | (99,800) | 396,000) | 289,600) | 450,800) | 622,800) | 946,600) | 706,300) | 1,034,000) | 1,097,700) | ||||||||
| Net sales | 881,800) | 1,793,600) | 1,078,300) | 1,163,800) | 1,237,100) | 2,226,400) | 1,186,400) | 1,136,000) | 1,378,400) | 2,253,900) | 1,296,600) | 1,183,400) | 1,276,800) | 2,122,100) | 1,004,700) | 942,000) | 1,021,000) | 2,194,100) | 1,438,500) | 1,285,700) | 1,547,700) | 3,063,000) | 1,935,400) | 1,501,100) | 1,785,800) | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Working capital turnover1 | 4.77 | 5.07 | 6.08 | 6.23 | 6.19 | 6.02 | 6.00 | 5.58 | 5.08 | 4.83 | 4.26 | 3.82 | 12.17 | 24.41 | 68.64 | 82.65 | — | 16.33 | 25.33 | 17.37 | 12.92 | 8.75 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 76.74 | 55.79 | 43.32 | 39.93 | 53.59 | 77.32 | — | — | — | — | — | — | — | 24.33 | 31.50 | 19.23 | 69.81 | 60.82 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 18.37 | 19.67 | 21.62 | 20.37 | 22.32 | 16.81 | 16.73 | 30.40 | 43.84 | 417.56 | 41.45 | 90.49 | 48.51 | 24.87 | 13.79 | 16.66 | 28.53 | 76.81 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 26.32 | 24.66 | 25.98 | 20.16 | 20.34 | 50.26 | 23.32 | 41.46 | 25.26 | 245.54 | 23.72 | 27.67 | 24.04 | 24.92 | 11.60 | 12.67 | 20.57 | 530.50 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 23.78 | 24.50 | 24.16 | 25.35 | 24.41 | 23.22 | 28.07 | 29.41 | 20.26 | 17.40 | 14.05 | 12.91 | 7.40 | 6.51 | 6.91 | 8.72 | 6.55 | 23.97 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Working capital turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Working capital
= (881,800 + 1,793,600 + 1,078,300 + 1,163,800)
÷ 1,031,400 = 4.77
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit significant fluctuations over the analyzed periods. Starting at approximately 1,097,700 thousand US dollars in May 2018, there is a downward trend observed until November 2019, reaching a low point of about 289,600 thousand US dollars. Following this, some recovery is observed with an increase to 396,000 thousand US dollars by February 2020. However, the working capital turns negative (-99,800 thousand US dollars) in May 2020, pointing to a period of potential liquidity strain. Subsequently, working capital recovers progressively, peaking again at 1,462,700 thousand US dollars in July 2021 before gradually declining toward around 1,031,400 thousand US dollars by May 2024. This overall pattern suggests volatility and intermittent liquidity challenges, with occasional periods of strengthened working capital positions.
- Net Sales
- Net sales values demonstrate considerable volatility across the quarters. Initial net sales start near 1,785,800 thousand US dollars in May 2018, followed by a notable dip to around 1,281,700 thousand US dollars in August 2019. Sales peak multiple times during the timeline, notably in February 2019 (approximately 3,063,000 thousand US dollars) and again in January 2022 (about 2,253,900 thousand US dollars). Mid-2020 shows a substantial drop (as low as 942,000 thousand US dollars in August 2020), possibly reflecting external pressures. Afterward, net sales demonstrate a pattern of partial recovery with oscillations, ending with lower figures such as 881,800 thousand US dollars in May 2024. The data reflects a cyclical sales pattern with peaks frequently followed by declines, indicating market or operational variability throughout the period.
- Working Capital Turnover Ratio
- The working capital turnover ratio, available for several periods, reveals high variance. Initially undefined in early periods, the ratio attains a peak in October 2020, reaching an exceptionally high value of 82.65, indicative of efficient utilization of working capital relative to sales during that period. Generally, turnover ratios after this peak stabilize in a range roughly between 3.82 and 6.23, showing moderate consistency in capital efficiency. The period with extremely high turnover should be considered carefully, as such an elevated ratio could result from very low working capital or temporary sales spikes. The trend toward moderate turnover rates thereafter suggests normalization of operational cycles and more stable working capital management.
- Overall Insights
- The data indicates that the company's financial performance over the examined quarters is marked by significant fluctuations in both liquidity and sales volumes. The variability in working capital and its turnover ratio suggests periodic challenges in managing short-term assets and liabilities, potentially driven by market conditions or internal factors. Despite these fluctuations, the company appears to maintain a degree of recovery capability and operational adaptation, as seen in recurring improvements in working capital and sales after downturns. Monitoring these trends would be advisable to better understand drivers of volatility and to enhance financial stability and efficiency.
Average Inventory Processing Period
GameStop Corp., average inventory processing period calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||||
| Inventory turnover | 5.42 | 6.29 | 4.24 | 6.54 | 5.83 | 6.67 | 4.16 | 6.52 | 5.23 | 5.10 | 3.91 | 7.06 | 7.07 | 6.36 | 4.36 | 8.48 | 6.44 | 5.30 | 4.10 | 5.96 | 5.05 | 4.78 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
| Average inventory processing period1 | 67 | 58 | 86 | 56 | 63 | 55 | 88 | 56 | 70 | 72 | 93 | 52 | 52 | 57 | 84 | 43 | 57 | 69 | 89 | 61 | 72 | 76 | — | — | — | ||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 40 | 38 | 41 | 40 | 37 | 40 | 43 | 46 | 43 | 43 | 47 | 50 | 46 | 44 | 42 | 33 | 35 | 37 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 81 | 75 | 81 | 82 | 89 | 87 | 90 | 92 | 91 | 80 | 77 | 72 | 75 | 70 | 71 | 63 | 74 | 73 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 117 | 107 | 106 | 102 | 111 | 104 | 113 | 111 | 116 | 100 | 96 | 100 | 106 | 98 | 100 | 94 | 104 | 98 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 59 | 57 | 81 | 66 | 65 | 59 | 86 | 72 | 72 | 63 | 74 | 60 | 68 | 65 | 72 | 53 | 65 | 60 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.42 = 67
2 Click competitor name to see calculations.
The analysis of the inventory turnover ratio and the average inventory processing period over the observed quarters reveals notable fluctuations and trends in the company's inventory management efficiency.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibits considerable variability across the periods. Starting from a low of 4.78 in May 2019, it generally increased, peaking at 8.48 in October 2020. This suggests periods of improved efficiency in selling inventory. However, several declines are evident, such as a drop to 3.91 in January 2022, indicating slower turnover during that quarter. The ratio tends to fluctuate between roughly 4 and 7 in most periods, reflecting an inconsistent but somewhat cyclical pattern in inventory turnover. Periods with higher turnover ratios correspond to more rapid sales of inventory, which is typical for strong sales performance or optimized stock management.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, generally moves inversely to the inventory turnover ratio, as expected. Initially, it was relatively high at 76 days in May 2019, then decreased to a low of 43 days in August 2020, reflecting faster inventory cycles. Subsequently, it increased again reaching a peak of 93 days in January 2022, indicating periods where inventory remains longer before being sold or used. This metric shows significant oscillations, implying challenges in maintaining consistent inventory turnover.
- Interrelation and Insights
- The inverse relationship between the two metrics is evident throughout the data. Periods with higher inventory turnover ratios correspond to shorter inventory processing periods, suggesting effective inventory movement. Conversely, when the turnover ratio dips, the processing period tends to lengthen, signaling slower inventory movement or possible overstocking.
- The fluctuations could be attributed to seasonal demand variations, changes in sales performance, supply chain dynamics, or strategic inventory management decisions. The peak turnover in late 2020 and subsequent decline into early 2022 may reflect external market conditions or internal operational adjustments.
Overall, the data indicate that while the company can achieve efficient inventory turnover at times, it faces variability that impacts consistency in inventory management. Careful attention to factors influencing these metrics could help stabilize and improve inventory efficiency going forward.
Average Receivable Collection Period
GameStop Corp., average receivable collection period calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||||
| Receivables turnover | 83.49 | 57.94 | 64.62 | 76.90 | 48.54 | 38.51 | 47.52 | 60.89 | 59.11 | 42.60 | 70.49 | 81.56 | 52.36 | 48.34 | 66.52 | 67.34 | 68.50 | 45.57 | 50.34 | 63.99 | 63.87 | 61.74 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
| Average receivable collection period1 | 4 | 6 | 6 | 5 | 8 | 9 | 8 | 6 | 6 | 9 | 5 | 4 | 7 | 8 | 5 | 5 | 5 | 8 | 7 | 6 | 6 | 6 | — | — | — | ||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | 10 | 8 | 9 | 9 | 10 | 8 | 9 | 9 | 9 | 8 | 9 | 8 | 9 | 8 | 8 | 8 | 8 | 7 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 5 | 5 | 6 | 5 | 5 | 5 | 2 | 3 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 83.49 = 4
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio over the reported periods reveals fluctuating efficiency in the company's credit management and collections. Starting from the earliest available data in May 2018, the ratio exhibited generally high values with some variability, peaking at 83.49 in May 2024, indicating a strong ability to convert receivables into cash. However, intermittent declines are noticeable, such as the drop from 81.56 in October 2021 to 42.6 in January 2022, reflecting periodic reductions in turnover efficiency.
Correspondingly, the average receivable collection period, representing the average number of days to collect outstanding receivables, shows an inverse pattern relative to the turnover ratio. The period mostly fluctuates between 4 to 9 days, with occasional increases aligning with the observed decreases in receivables turnover. For example, when the turnover dipped to 42.6 in January 2022, the collection period rose to 9 days, indicating slower collections.
- Receivables Turnover Ratio
- The ratio generally remains high across most quarters, though values fluctuate between lows around 38.51 and highs above 80, suggesting variability in the efficiency of accounts receivable management.
- Significant peaks, such as those in May 2021 (81.56) and May 2024 (83.49), indicate periods of optimal receivable conversion.
- Conversely, pronounced troughs, notably in January 2022 (42.6) and October 2022 (47.52), indicate periods of reduced turnover efficiency.
- Average Receivable Collection Period
- This metric inversely mirrors the turnover ratio, varying mostly between 4 and 9 days across the recorded periods.
- Minimal collection days (around 4-5 days) align with higher turnover ratios, reflecting faster receivable collection.
- Increases to 8-9 days correspond to lower turnover ratios, signaling a slower collection pace during those times.
The interplay between these two indicators confirms a generally effective receivables process, albeit with some periods where collection efficiency diminished. The trend suggests ongoing adjustments or external factors influencing the company's accounts receivable management, with recent values indicating a recovery and strong performance in early 2024.
Operating Cycle
GameStop Corp., operating cycle calculation (quarterly data)
No. days
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||||
| Average inventory processing period | 67 | 58 | 86 | 56 | 63 | 55 | 88 | 56 | 70 | 72 | 93 | 52 | 52 | 57 | 84 | 43 | 57 | 69 | 89 | 61 | 72 | 76 | — | — | — | ||||||||
| Average receivable collection period | 4 | 6 | 6 | 5 | 8 | 9 | 8 | 6 | 6 | 9 | 5 | 4 | 7 | 8 | 5 | 5 | 5 | 8 | 7 | 6 | 6 | 6 | — | — | — | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Operating cycle1 | 71 | 64 | 92 | 61 | 71 | 64 | 96 | 62 | 76 | 81 | 98 | 56 | 59 | 65 | 89 | 48 | 62 | 77 | 96 | 67 | 78 | 82 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | 91 | 83 | 90 | 91 | 99 | 95 | 99 | 101 | 100 | 88 | 86 | 80 | 84 | 78 | 79 | 71 | 82 | 80 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 63 | 61 | 85 | 70 | 69 | 63 | 90 | 76 | 76 | 67 | 79 | 65 | 74 | 70 | 77 | 58 | 67 | 63 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 67 + 4 = 71
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period demonstrates noticeable fluctuations over the observed quarters. Initial values are missing, but from May 2019 onward, a decreasing trend is seen from 76 days to 43 days by October 2020, indicating improved inventory turnover efficiency during this period. However, subsequent quarters reveal increased volatility, with periods rising to as high as 93 days by January 2022 and again showing repeated fluctuations between approximately 55 and 93 days across the latest quarters. This pattern suggests challenges in maintaining consistent inventory management efficiency.
- Average Receivable Collection Period
- The average receivable collection period remains relatively stable and low throughout the timeframe, generally ranging from 4 to 9 days. A subtle increase is noted around 2019 to early 2020 where the period extended slightly to 7-8 days, but overall, this metric shows relatively efficient receivables collection with minor variations. The lowest periods, around 4 to 5 days, are found in several late quarters, indicating occasional improvements in collection speed.
- Operating Cycle
- The operating cycle closely mirrors the trends seen in the average inventory processing period, fluctuating substantially over the observed quarters. Starting from 82 days in May 2019, the cycle decreases to 48 days by October 2020, reflecting a period of improved operational efficiency. However, from early 2021 onward, the operating cycle demonstrates variability, peaking as high as 98 days in January 2022 and recurring elevated values near or above 90 days in multiple quarters. These variations suggest recurring operational inefficiencies, largely influenced by the fluctuating inventory turnover given the relatively stable receivable collection period.
Average Payables Payment Period
GameStop Corp., average payables payment period calculation (quarterly data)
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||||
| Payables turnover | 12.97 | 12.28 | 5.33 | 11.72 | 7.88 | 8.57 | 5.30 | 22.02 | 12.40 | 9.90 | 6.27 | 10.28 | 10.39 | 11.21 | 8.53 | 15.69 | 19.89 | 11.97 | 7.43 | 15.35 | 12.65 | 5.68 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
| Average payables payment period1 | 28 | 30 | 68 | 31 | 46 | 43 | 69 | 17 | 29 | 37 | 58 | 36 | 35 | 33 | 43 | 23 | 18 | 30 | 49 | 24 | 29 | 64 | — | — | — | ||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 99 | 106 | 96 | 95 | 86 | 102 | 88 | 87 | 84 | 101 | 86 | 93 | 91 | 105 | 97 | 92 | 93 | 113 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 45 | 36 | 41 | 43 | 45 | 40 | 43 | 51 | 55 | 49 | 50 | 49 | 57 | 49 | 57 | 54 | 50 | 39 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 75 | 55 | 60 | 61 | 68 | 59 | 70 | 72 | 79 | 65 | 65 | 69 | 81 | 66 | 81 | 87 | 79 | 57 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 39 | 37 | 53 | 44 | 43 | 38 | 51 | 42 | 45 | 47 | 61 | 52 | 59 | 72 | 88 | 34 | 14 | 33 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.97 = 28
2 Click competitor name to see calculations.
The payables turnover ratio exhibits a fluctuating pattern over the observed periods, indicating variability in the company's efficiency in settling its payables. Starting from a level of 5.68 in May 2019, the ratio increased substantially to a peak of 22.02 by October 2022. This suggests periods of more rapid payment or favorable credit terms during these peaks. Conversely, there are intervals with marked declines, such as the drop to 5.3 in January 2023 and again to 5.33 in October 2023, reflecting slower turnover or extended payment durations in those quarters.
Correspondingly, the average payables payment period, measured in days, exhibits an inverse relationship to the payables turnover ratio, as expected. The payment period decreased from 64 days in May 2019 to as low as 17 days in October 2022, signaling quicker settlements during that timeframe. However, significant increases in the payment period are evident around January 2023 with 69 days and again in October 2023 with 68 days, denoting slower payment cycles, which matches the dips observed in the payables turnover ratio.
- Trend Analysis
- The data reveals alternating phases of rapid and delayed payments. The periods of higher turnover ratios align closely with decreased payment periods, indicating effective management of payables in those quarters. Conversely, lower turnover ratios coincide with extended payment periods, suggesting possible liquidity constraints or strategic payment deferrals.
- Volatility
- The pronounced swings in both ratios and payment periods highlight potential variability in the company's working capital management or changes in supplier contract terms. Sharp fluctuations could impact supplier relationships and cash flow predictability.
- Overall Insights
- The company demonstrates capacity for efficient payables management but experiences inconsistent application across quarters. The notable peaks in turnover and corresponding troughs in payment days suggest periods of operational strength, while the reversals point to challenges in maintaining steady payment discipline.
Cash Conversion Cycle
GameStop Corp., cash conversion cycle calculation (quarterly data)
No. days
| May 4, 2024 | 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||||||
| Average inventory processing period | 67 | 58 | 86 | 56 | 63 | 55 | 88 | 56 | 70 | 72 | 93 | 52 | 52 | 57 | 84 | 43 | 57 | 69 | 89 | 61 | 72 | 76 | — | — | — | ||||||||
| Average receivable collection period | 4 | 6 | 6 | 5 | 8 | 9 | 8 | 6 | 6 | 9 | 5 | 4 | 7 | 8 | 5 | 5 | 5 | 8 | 7 | 6 | 6 | 6 | — | — | — | ||||||||
| Average payables payment period | 28 | 30 | 68 | 31 | 46 | 43 | 69 | 17 | 29 | 37 | 58 | 36 | 35 | 33 | 43 | 23 | 18 | 30 | 49 | 24 | 29 | 64 | — | — | — | ||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 43 | 34 | 24 | 30 | 25 | 21 | 27 | 45 | 47 | 44 | 40 | 20 | 24 | 32 | 46 | 25 | 44 | 47 | 47 | 43 | 49 | 18 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | 46 | 47 | 49 | 48 | 54 | 55 | 56 | 50 | 45 | 39 | 36 | 31 | 27 | 29 | 22 | 17 | 32 | 41 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 24 | 24 | 32 | 26 | 26 | 25 | 39 | 34 | 31 | 20 | 18 | 13 | 15 | -2 | -11 | 24 | 53 | 30 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 67 + 4 – 28 = 43
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibits notable fluctuations over the examined quarters. Early data points reveal values around the mid-70s to 60s in days. A general decline is seen reaching a low of 43 days in October 2020, indicating more efficient inventory turnover at that time. However, there are intermittent increases, with peaks near 93 days in January 2022 and values approaching the 80s from late 2019 into early 2020. The latter quarters display moderate variability, oscillating between roughly 55 to 67 days, suggesting some inconsistency in inventory management efficiency.
- Average Receivable Collection Period
- This period remains relatively stable throughout the timeframe, primarily ranging between 4 and 9 days. Minor fluctuations do appear, with a slight peak of 9 days witnessed in January 2022 and April 2023. The lowest collection periods are observed at 4 days during July 2021 and May 2024. Such consistency indicates steady efficiency in debt collection practices, with no significant deterioration or improvement trends.
- Average Payables Payment Period
- The payables payment period demonstrates significant variability. Initially, there is a downward trend from 64 days in May 2018 toward a trough around 17 to 18 days between mid-2022 and late 2022, indicating a faster payment cycle during those times. Contrastingly, several peaks are evident, including 69 days in January 2023 and 68 days in October 2023, signaling periods of extended payment terms or delays. This volatile payment behavior suggests fluctuating supplier payment strategies or cash flow management changes throughout the periods.
- Cash Conversion Cycle
- The cash conversion cycle remains somewhat erratic but generally falls within a range of approximately 18 to 49 days. The highest value recorded is 49 days in August 2018, followed by several other elevated points near the 40 to 47-day range. Lowest values such as 18 days in May 2018 indicate periods of efficient cash flow conversion. Overall, the cycle does not show a strong directional trend but reflects intermittent improvements and setbacks in converting investments in inventory and receivables into cash.