Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
GameStop Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
The analysis of investment activity ratios reveals a divergence between the efficiency of fixed asset utilization and the overall utilization of the capital base. While fixed asset productivity has increased significantly, total asset and equity turnover indicate shifts in the company's capital structure and broader asset management.
- Net Fixed Asset Turnover
- A consistent upward trend is observed in the net fixed asset turnover ratio, which rose from 25.79 in 2019 to 55.56 by February 2024. This suggests a substantial increase in the revenue generated per unit of net fixed assets, indicating either an optimization of physical infrastructure or a reduction in the carrying value of fixed assets relative to sales.
- Net Fixed Asset Turnover (Including Operating Leases)
- In contrast to the standard fixed asset ratio, the inclusion of right-of-use assets resulted in a sharp decline between 2019 and 2020, falling from 25.79 to 6.20. The ratio has since remained relatively stable, fluctuating between 5.90 and 8.50. This discrepancy highlights the significant impact of lease obligations on the company's asset base, suggesting that a large portion of the operational infrastructure is lease-funded rather than owned.
- Total Asset Turnover
- Total asset turnover has remained relatively stable over the six-year period, fluctuating within a narrow range between 1.72 and 2.29. A slight decline occurred in 2022, followed by a gradual recovery to 1.95 in 2024, indicating a consistent ability to generate revenue from the total asset pool despite changes in the internal composition of those assets.
- Equity Turnover
- Equity turnover exhibited significant volatility, peaking at 11.66 in 2021 before experiencing a sharp contraction to 3.75 in 2022. The ratio remained low through 2024, ending at 3.94. This downward shift suggests a substantial increase in shareholders' equity that has outpaced revenue growth, leading to a decrease in the efficiency of equity utilization for sales generation.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Fixed Asset Turnover
GameStop Corp., net fixed asset turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 5,272,800) | 5,927,200) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | |
| Property and equipment, net of accumulated depreciation | 94,900) | 136,500) | 163,600) | 201,200) | 275,900) | 321,300) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 55.56 | 43.42 | 36.74 | 25.30 | 23.44 | 25.79 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 2.52 | 2.82 | 2.75 | 2.93 | — | — | |
| Home Depot Inc. | 5.84 | 6.14 | 6.00 | 5.35 | — | — | |
| Lowe’s Cos. Inc. | 4.89 | 5.53 | 5.05 | 4.68 | — | — | |
| TJX Cos. Inc. | 8.25 | 8.63 | 9.21 | 6.38 | — | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.07 | 3.47 | 3.43 | 3.46 | — | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | 3.24 | 3.51 | 3.48 | 3.32 | — | — | |
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net of accumulated depreciation
= 5,272,800 ÷ 94,900 = 55.56
2 Click competitor name to see calculations.
Analysis of long-term investment activity reveals a divergence between revenue generation and the company's physical asset base from 2019 to 2024.
- Net Sales Performance
- A general downward trend in net sales is observed, with revenue falling from 8.28 billion USD in 2019 to 5.27 billion USD in 2024. Despite a temporary increase between 2021 and 2022, the overall trajectory indicates a contraction in top-line volume over the six-year period.
- Net Fixed Asset Contraction
- There is a consistent and significant reduction in net property and equipment. The asset base declined every consecutive year, moving from 321.3 million USD in 2019 to 94.9 million USD in 2024. This represents a substantial decrease in the company's net investment in long-term physical assets.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio demonstrates a sharp upward trend, increasing from 25.79 in 2019 to 55.56 in 2024. This increase is primarily driven by the aggressive reduction of the asset denominator rather than growth in net sales. The acceleration of this ratio, particularly from 2021 onward, suggests that the company has significantly reduced its physical footprint or experienced substantial depreciation, resulting in higher sales generation per unit of remaining fixed assets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
GameStop Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 5,272,800) | 5,927,200) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | |
| Property and equipment, net of accumulated depreciation | 94,900) | 136,500) | 163,600) | 201,200) | 275,900) | 321,300) | |
| Operating lease right-of-use assets | 555,800) | 560,800) | 586,600) | 662,100) | 767,000) | —) | |
| Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset) | 650,700) | 697,300) | 750,200) | 863,300) | 1,042,900) | 321,300) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 8.10 | 8.50 | 8.01 | 5.90 | 6.20 | 25.79 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Amazon.com Inc. | 1.94 | 2.08 | 2.03 | 2.17 | — | — | |
| Home Depot Inc. | 4.49 | 4.83 | 4.85 | 4.31 | — | — | |
| Lowe’s Cos. Inc. | 4.04 | 4.60 | 4.15 | 3.90 | — | — | |
| TJX Cos. Inc. | 3.40 | 3.36 | 3.44 | 2.29 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 2.33 | 2.55 | 2.52 | 2.55 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | 2.53 | 2.69 | 2.66 | 2.52 | — | — | |
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net of accumulated depreciation (including operating lease, right-of-use asset)
= 5,272,800 ÷ 650,700 = 8.10
2 Click competitor name to see calculations.
The analysis of the net fixed asset turnover ratio reveals a significant structural shift in asset utilization between 2019 and 2020, followed by a period of relative stability characterized by a contracting asset base and fluctuating revenue streams.
- Asset Utilization and Turnover Volatility
- A precipitous decline in the net fixed asset turnover ratio is observed between February 2019 and February 2020, falling from 25.79 to 6.20. This sharp contraction is directly correlated with a substantial increase in property and equipment, which rose from 321.3 million to 1.04 billion during this interval. The simultaneous decrease in net sales during this period exacerbated the drop in efficiency, indicating a significant expansion of the capital base relative to revenue generation.
- Fixed Asset Base Trajectory
- Following the peak in 2020, a consistent downward trend in net fixed assets is evident. The asset base decreased annually from 1.04 billion in 2020 to 650.7 million by February 2024. This systematic reduction in the denominator of the turnover ratio has helped stabilize the efficiency metric, preventing further deterioration despite continued volatility in sales.
- Revenue Correlation and Recovery Patterns
- Net sales exhibited a downward trend from 8.29 billion in 2019 to a trough of 5.09 billion in 2021, which corresponds with the lowest recorded turnover ratio of 5.90. A moderate recovery in sales occurred between 2022 and 2023, peaking at 6.01 billion, which pushed the turnover ratio upward to 8.50 in January 2023. However, the most recent data from February 2024 shows a decline in sales to 5.27 billion, resulting in a slight contraction of the turnover ratio to 8.10.
In summary, the period from 2020 to 2024 reflects a transition from a high-turnover, low-asset model to a different operational scale. While the efficiency levels remain substantially lower than those recorded in 2019, the gradual reduction of net fixed assets has allowed the turnover ratio to stabilize within a range of 5.90 to 8.50.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Asset Turnover
GameStop Corp., total asset turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 5,272,800) | 5,927,200) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | |
| Total assets | 2,709,000) | 3,113,400) | 3,499,300) | 2,472,600) | 2,819,700) | 4,044,300) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.95 | 1.90 | 1.72 | 2.06 | 2.29 | 2.05 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 1.02 | 1.09 | 1.11 | 1.12 | — | — | |
| Home Depot Inc. | 1.99 | 2.06 | 2.10 | 1.87 | — | — | |
| Lowe’s Cos. Inc. | 2.07 | 2.22 | 2.16 | 1.92 | — | — | |
| TJX Cos. Inc. | 1.82 | 1.76 | 1.71 | 1.04 | — | — | |
| Total Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.20 | 1.30 | 1.33 | 1.27 | — | — | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | 0.93 | 0.97 | 0.96 | 0.88 | — | — | |
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 5,272,800 ÷ 2,709,000 = 1.95
2 Click competitor name to see calculations.
The total asset turnover ratio reflects a period of volatility in operational efficiency between 2019 and 2024, characterized by an initial peak, a significant contraction, and a subsequent moderate recovery. While net sales have generally trended downward over the six-year period, the efficiency of asset utilization has been heavily influenced by fluctuations in the total asset base.
- Net Sales Trends
- A general decline in revenue is observed, with net sales falling from 8,285,300 thousand US$ in 2019 to 5,272,800 thousand US$ by February 3, 2024. Despite a temporary increase between 2021 and 2022, the overall trajectory indicates a sustained reduction in top-line performance.
- Total Asset Fluctuations
- The asset base has experienced significant volatility, decreasing from 4,044,300 thousand US$ in 2019 to a low of 2,472,600 thousand US$ in 2021. A substantial increase followed in 2022, reaching 3,499,300 thousand US$, before trending downward again to 2,709,000 thousand US$ in 2024.
- Total Asset Turnover Analysis
- The asset turnover ratio peaked at 2.29 in 2020, suggesting high efficiency during a period of simultaneous declines in both sales and assets. A notable decline occurred in 2022, where the ratio dropped to 1.72; this downturn coincided with a sharp increase in total assets that was not matched by a proportional increase in net sales. In the most recent two fiscal years, a recovery trend is evident, with the ratio rising to 1.90 in 2023 and 1.95 in 2024, driven primarily by a reduction in the total asset base relative to sales.
In summary, the entity has transitioned from a high-turnover state in 2020 to a period of reduced asset productivity in 2022, eventually stabilizing near 1.95. The recent improvement in the turnover ratio is attributed more to the contraction of the asset base than to an increase in sales volume.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Equity Turnover
GameStop Corp., equity turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 5,272,800) | 5,927,200) | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | |
| Stockholders’ equity | 1,338,600) | 1,322,300) | 1,602,500) | 436,700) | 611,500) | 1,336,200) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 3.94 | 4.48 | 3.75 | 11.66 | 10.57 | 6.20 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 2.23 | 2.85 | 3.52 | 3.40 | — | — | |
| Home Depot Inc. | 146.23 | 100.77 | — | 40.05 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | 62.35 | — | — | |
| TJX Cos. Inc. | 7.42 | 7.85 | 8.09 | 5.51 | — | — | |
| Equity Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.33 | 4.50 | 5.57 | 4.86 | — | — | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | 3.21 | 3.82 | 4.14 | 3.70 | — | — | |
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Equity turnover = Net sales ÷ Stockholders’ equity
= 5,272,800 ÷ 1,338,600 = 3.94
2 Click competitor name to see calculations.
The analysis of equity turnover reveals a volatile relationship between revenue generation and the company's capital base over the six-year period ending February 3, 2024.
- Equity Turnover Trajectory
- A significant upward trend in equity turnover is observed between 2019 and 2021, with the ratio increasing from 6.20 to a peak of 11.66. This growth was not driven by an increase in operational performance, as net sales declined concurrently from 8.285 billion USD to 5.089 billion USD. The surge in the turnover ratio was instead the result of a sharp contraction in stockholders' equity, which fell from 1.336 billion USD to 436.7 million USD, indicating a period of significantly reduced capital buffers relative to sales volume.
- Capital Base Shift
- A dramatic reversal in the turnover ratio occurred in 2022, where the value dropped to 3.75. This shift is directly attributable to a substantial increase in stockholders' equity, which rose to 1.602 billion USD. The rapid expansion of the equity base far outweighed the modest recovery in net sales (6.010 billion USD), resulting in a lower turnover ratio and a more heavily capitalized financial structure.
- Recent Stability and Trends
- From 2022 to 2024, the equity turnover ratio has remained relatively stable, fluctuating within a narrow range between 3.75 and 4.48. This stabilization coincides with a period where stockholders' equity remained consistent, hovering around 1.3 billion USD, while net sales experienced a gradual decline to 5.272 billion USD by February 2024. The current trend suggests a normalized relationship between the company's investment in equity and its capacity to generate revenue, compared to the extremes observed between 2019 and 2021.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?