GameStop Corp (GME)
Current ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,974,200 | 2,323,700 | 2,598,800 | 1,551,200 | 1,633,700 |
| Total current liabilities | US$ in thousands | 934,500 | 1,339,100 | 1,354,700 | 1,342,700 | 1,237,700 |
| Current ratio | 2.11 | 1.74 | 1.92 | 1.16 | 1.32 |
February 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,974,200K ÷ $934,500K
= 2.11
The current ratio of GameStop Corp has displayed fluctuations over the past five years. In the most recent fiscal year ending on February 3, 2024, the current ratio was 2.11, indicating that the company had $2.11 in current assets to cover each dollar of current liabilities. This represents an improvement compared to the previous year's ratio of 1.74, suggesting that GameStop strengthened its short-term liquidity position.
Looking back further, the current ratio was 1.92 in January 29, 2022, and 1.16 in January 30, 2021. It reached its lowest point in the past five years in February 1, 2020, at 1.32. These variations indicate fluctuations in the company's ability to meet its short-term obligations over the years, with periods of stronger and weaker liquidity positions.
Overall, the upward trend in the current ratio from 2020 to 2024 suggests that GameStop has improved its liquidity position by increasing its current assets relative to current liabilities. This could reflect better management of working capital or an improved financial position. However, further analysis would be required to fully assess the effectiveness and sustainability of these improvements.