GameStop Corp (GME)

Quick ratio

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Cash 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
Receivables US$ in thousands 91,000 153,900
Total current liabilities US$ in thousands 665,400 934,500 934,500 1,339,100 1,339,100
Quick ratio 7.18 1.38 1.28 1.04 1.15

January 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,756,900K + $18,000K + $—K) ÷ $665,400K
= 7.18

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has sufficient liquid assets to cover its short-term obligations.

In the case of GameStop Corp, the quick ratio has fluctuated over the specified periods. As of January 28, 2023, the quick ratio was 1.15, suggesting that the company had just enough liquid assets to cover its short-term liabilities. However, by January 31, 2023, the quick ratio decreased to 1.04, indicating a slightly tighter liquidity position.

Subsequently, the quick ratio improved to 1.28 on January 31, 2024, and increased further to 1.38 by February 3, 2024. These values reflect a strengthening liquidity position, indicating that GameStop had more than enough liquid assets to meet its short-term obligations during these periods.

Notably, by January 31, 2025, the quick ratio rose significantly to 7.18, which is a substantial increase compared to the previous periods. A quick ratio of 7.18 implies a very high level of liquidity, suggesting that GameStop had a significant amount of liquid assets relative to its short-term liabilities at that point in time.

Overall, GameStop Corp's quick ratio has shown variability but generally improved over the specified periods, with the most recent data indicating a very strong liquidity position as of January 31, 2025.


See also:

GameStop Corp Quick Ratio