Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
GameStop Corp., profitability ratios
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | GameStop Corp. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | GameStop Corp. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | GameStop Corp. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | GameStop Corp. ROE improved from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | GameStop Corp. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Gross Profit Margin
GameStop Corp., gross profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 1,347,800) | 1,259,500) | 1,908,700) | 2,308,100) | 3,040,100) | 3,009,300) | |
| Net sales | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | 9,224,600) | 8,607,900) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 22.42% | 24.75% | 29.52% | 27.86% | 32.96% | 34.96% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 43.81% | 42.03% | 39.57% | 40.99% | — | — | |
| Home Depot Inc. | 33.63% | 33.95% | 34.09% | 34.34% | — | — | |
| Lowe’s Cos. Inc. | 33.30% | 33.01% | 31.80% | 32.12% | — | — | |
| TJX Cos. Inc. | 28.50% | 23.66% | 28.46% | 28.59% | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 1,347,800 ÷ 6,010,700 = 22.42%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | GameStop Corp. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
GameStop Corp., operating profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating earnings (loss) | (368,500) | (237,800) | (399,600) | (702,000) | 135,600) | 557,700) | |
| Net sales | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | 9,224,600) | 8,607,900) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | -6.13% | -4.67% | -6.18% | -8.47% | 1.47% | 6.48% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 2.38% | 5.30% | 5.93% | 5.18% | — | — | |
| Home Depot Inc. | 15.24% | 13.84% | 14.37% | 14.35% | — | — | |
| Lowe’s Cos. Inc. | 12.56% | 10.77% | 8.75% | 5.63% | — | — | |
| TJX Cos. Inc. | 9.79% | 1.81% | 10.59% | 10.82% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.44% | 7.38% | 8.11% | 7.68% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 8.09% | 8.18% | 5.56% | 7.83% | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Operating profit margin = 100 × Operating earnings (loss) ÷ Net sales
= 100 × -368,500 ÷ 6,010,700 = -6.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | GameStop Corp. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Net Profit Margin
GameStop Corp., net profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | (381,300) | (215,300) | (470,900) | (673,000) | 34,700) | 353,200) | |
| Net sales | 6,010,700) | 5,089,800) | 6,466,000) | 8,285,300) | 9,224,600) | 8,607,900) | |
| Profitability Ratio | |||||||
| Net profit margin1 | -6.34% | -4.23% | -7.28% | -8.12% | 0.38% | 4.10% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | -0.53% | 7.10% | 5.53% | 4.13% | — | — | |
| Home Depot Inc. | 10.87% | 9.74% | 10.20% | 10.28% | — | — | |
| Lowe’s Cos. Inc. | 8.77% | 6.51% | 5.93% | 3.25% | — | — | |
| TJX Cos. Inc. | 6.76% | 0.28% | 7.84% | 7.85% | — | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.14% | 7.21% | 6.58% | 5.63% | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 4.67% | 8.37% | 4.18% | 6.13% | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × -381,300 ÷ 6,010,700 = -6.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | GameStop Corp. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Return on Equity (ROE)
GameStop Corp., ROE calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | (381,300) | (215,300) | (470,900) | (673,000) | 34,700) | 353,200) | |
| Stockholders’ equity | 1,602,500) | 436,700) | 611,500) | 1,336,200) | 2,214,500) | 2,254,100) | |
| Profitability Ratio | |||||||
| ROE1 | -23.79% | -49.30% | -77.01% | -50.37% | 1.57% | 15.67% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | -1.86% | 24.13% | 22.84% | 18.67% | — | — | |
| Home Depot Inc. | — | 390.00% | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 406.05% | 217.09% | 63.50% | — | — | |
| TJX Cos. Inc. | 54.69% | 1.55% | 55.01% | 60.61% | — | — | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 17.48% | 35.05% | 40.86% | 40.77% | — | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 19.34% | 30.06% | 18.33% | 31.35% | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -381,300 ÷ 1,602,500 = -23.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | GameStop Corp. ROE improved from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
GameStop Corp., ROA calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | (381,300) | (215,300) | (470,900) | (673,000) | 34,700) | 353,200) | |
| Total assets | 3,499,300) | 2,472,600) | 2,819,700) | 4,044,300) | 5,041,600) | 4,975,900) | |
| Profitability Ratio | |||||||
| ROA1 | -10.90% | -8.71% | -16.70% | -16.64% | 0.69% | 7.10% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | -0.59% | 7.93% | 6.64% | 5.14% | — | — | |
| Home Depot Inc. | 22.86% | 18.23% | 21.94% | 25.27% | — | — | |
| Lowe’s Cos. Inc. | 18.91% | 12.49% | 10.85% | 6.71% | — | — | |
| TJX Cos. Inc. | 11.53% | 0.29% | 13.55% | 21.36% | — | — | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.19% | 9.17% | 9.20% | 8.83% | — | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 4.36% | 7.07% | 3.39% | 5.64% | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -381,300 ÷ 3,499,300 = -10.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | GameStop Corp. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |