GameStop Corp (GME)
Return on equity (ROE)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 131,300 | 6,700 | 6,700 | -313,100 | -313,100 |
| Total stockholders’ equity | US$ in thousands | 4,929,800 | 1,338,600 | 1,338,600 | 1,322,300 | 1,322,300 |
| ROE | 2.66% | 0.50% | 0.50% | -23.68% | -23.68% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $131,300K ÷ $4,929,800K
= 2.66%
GameStop Corp's return on equity (ROE) has exhibited a mixed trend over the past few years. As of January 28, 2023, and January 31, 2023, the company reported a negative ROE of -23.68%. This indicates that the company's net income was not generating adequate returns for the shareholders' equity invested in the business.
However, there seems to be a slight improvement in GameStop's performance as of January 31, 2024, and February 3, 2024, where the ROE remained constant at 0.50%. This can signify a stabilization in the company's ability to generate profits relative to its equity base.
More recently, as of January 31, 2025, GameStop Corp experienced a noticeable increase in its ROE to 2.66%. This uptick suggests a more favorable profitability outlook, indicating that the company has been able to utilize its shareholders' equity more efficiently to generate returns.
Overall, GameStop Corp's ROE performance reflects fluctuating profitability levels and efficiency in utilizing equity capital for generating returns. It is essential for stakeholders to monitor this metric to assess the company's financial health and performance over time.