GameStop Corp (GME)
Cash ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,756,900 | 4,583,400 | 4,193,100 | 1,003,400 | 921,700 | 925,200 | 909,000 | 909,000 | 894,700 | 894,700 | 1,057,000 | 1,057,000 | 1,139,000 | 1,139,000 | 803,800 | 803,800 | 908,900 | 908,900 | 1,035,000 | 1,271,400 |
| Short-term investments | US$ in thousands | 18,000 | 32,800 | 11,100 | 83,000 | 277,600 | 277,600 | 300,500 | 300,500 | 300,000 | 300,000 | 253,100 | 253,100 | 251,600 | 251,600 | 238,300 | 238,300 | — | 0 | — | — |
| Total current liabilities | US$ in thousands | 665,400 | 1,099,600 | 783,500 | 848,300 | 934,500 | 934,500 | 1,437,800 | 1,437,800 | 1,071,400 | 1,071,400 | 1,319,500 | 1,319,500 | 1,339,100 | 1,339,100 | 1,588,700 | 1,588,700 | 932,400 | 932,400 | 1,126,900 | 1,354,700 |
| Cash ratio | 7.18 | 4.20 | 5.37 | 1.28 | 1.28 | 1.29 | 0.84 | 0.84 | 1.12 | 1.12 | 0.99 | 0.99 | 1.04 | 1.04 | 0.66 | 0.66 | 0.97 | 0.97 | 0.92 | 0.94 |
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 has exhibited some fluctuations over the past few years. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. As of January 31, 2022, the cash ratio was 0.94, slightly below 1, suggesting that the company may have had difficulty meeting its short-term obligations solely with its cash on hand.
The ratio remained relatively stable around the 0.9 to 1.1 range until October 29, 2022, when it dropped to 0.66. This sudden decrease could imply a potential liquidity strain for the company during that period. However, the ratio stayed at 0.66 until January 31, 2023, suggesting a consistent level of liquidity issues.
From January 31, 2023, onwards, the cash ratio started to improve significantly, reaching 1.29 by January 31, 2024. This increase indicates that GameStop Corp had a higher level of cash reserves relative to its short-term obligations, reflecting improved liquidity and financial health.
The most notable rise in the cash ratio occurred between July 31, 2024, and January 31, 2025, where the ratio surged from 5.37 to 7.18. This substantial increase suggests that GameStop Corp significantly bolstered its cash position and could comfortably meet its immediate financial obligations with ample cash reserves.
Overall, the cash ratio trend for GameStop Corp indicates fluctuations in liquidity levels over the analyzed period, with improvements seen in recent years, particularly a significant increase in cash reserves in the latter part of the timeline.