GameStop Corp (GME)
Return on equity (ROE)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,700 | -313,100 | -381,300 | -215,300 | -470,900 |
| Total stockholders’ equity | US$ in thousands | 1,338,600 | 1,322,300 | 1,602,500 | 436,700 | 611,500 |
| ROE | 0.50% | -23.68% | -23.79% | -49.30% | -77.01% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,700K ÷ $1,338,600K
= 0.50%
GameStop Corp's return on equity (ROE) has exhibited a fluctuating trend over the past five years. The company's ROE was negative in four out of the five years, reflecting challenges in generating profits relative to shareholders' equity.
In the most recent fiscal year, GameStop improved its ROE to 0.50%, a positive indicator compared to the significant negative ROE figures in the preceding years. This improvement may suggest that the company is taking steps to enhance its operational efficiency and profitability.
However, the ROE figures for the prior years highlight persistent difficulties faced by GameStop in delivering value to shareholders. The sharp decline from -23.79% in 2022 to -49.30% in 2021 and -77.01% in 2020 indicates deteriorating performance and financial health during those periods.
Overall, GameStop's ROE trend suggests a challenging operating environment and the need for sustained efforts to enhance profitability and sustainable growth in the future.