GameStop Corp (GME)
Cash ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,756,900 | 921,700 | 921,700 | 1,139,000 | 1,139,000 |
| Short-term investments | US$ in thousands | 18,000 | 277,600 | 277,600 | 251,600 | 251,600 |
| Total current liabilities | US$ in thousands | 665,400 | 934,500 | 934,500 | 1,339,100 | 1,339,100 |
| Cash ratio | 7.18 | 1.28 | 1.28 | 1.04 | 1.04 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,756,900K
+ $18,000K)
÷ $665,400K
= 7.18
The cash ratio for GameStop Corp, as reported over the specified periods, has shown a steady increase from 1.04 in January 2023 to a significantly higher level of 7.18 in January 2025. This indicates that GameStop has improved its ability to cover its current liabilities with its cash and cash equivalents. The rising trend in the cash ratio reflects a positive liquidity position for the company, suggesting that it has ample liquid resources to meet its short-term obligations. Maintaining a high cash ratio provides a cushion to navigate through potential financial uncertainties and indicates a prudent approach towards managing working capital and liquidity.