GameStop Corp (GME)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 921,700 | 909,000 | 894,700 | 1,057,000 | 1,139,000 | 803,800 | 908,900 | 1,035,000 | 1,271,400 | 1,413,000 | 1,720,400 | 694,700 | 508,500 | 445,900 | 735,100 | 570,300 | 499,400 | 290,300 | 424,000 | 543,200 |
| Short-term investments | US$ in thousands | 277,600 | 300,500 | 300,000 | 253,100 | 251,600 | 238,300 | 0 | 0 | 0 | 0 | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 |
| Cash ratio | 1.28 | 0.84 | 1.12 | 0.99 | 1.04 | 0.66 | 0.97 | 0.92 | 0.94 | 0.92 | 1.44 | 0.57 | 0.38 | 0.28 | 0.56 | 0.38 | 0.40 | 0.18 | 0.35 | 0.42 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($921,700K
+ $277,600K)
÷ $934,500K
= 1.28
The cash ratio of GameStop Corp has fluctuated over the past few years, indicating its ability to cover short-term liabilities with its cash and cash equivalents. The highest cash ratio was observed at 1.44 on Jul 31, 2021, suggesting the company had a strong liquidity position at that time. However, the ratio decreased to 0.28 on Jan 30, 2021, reflecting a potential liquidity strain.
The current cash ratio of 1.28 on Feb 3, 2024, indicates that GameStop has $1.28 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company has a relatively healthy cash position to meet its short-term obligations.
Overall, monitoring the trend of the cash ratio can provide valuable insights into GameStop's liquidity management and financial health, helping stakeholders assess the company's ability to weather short-term financial challenges.