GameStop Corp (GME)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 6,700 | -8,200 | -99,800 | -205,700 | -313,100 | -508,800 | -519,500 | -472,400 | -381,300 | -153,300 | -66,700 | -116,400 | -215,300 | -274,800 | -339,400 | -643,400 | -470,900 | -679,600 | -1,084,800 | -694,400 |
| Total stockholders’ equity | US$ in thousands | 1,338,600 | 1,262,800 | 1,267,200 | 1,271,600 | 1,322,300 | 1,245,000 | 1,343,500 | 1,450,700 | 1,602,500 | 1,754,900 | 1,852,000 | 879,500 | 436,700 | 332,200 | 352,300 | 435,000 | 611,500 | 617,100 | 809,700 | 1,291,700 |
| ROE | 0.50% | -0.65% | -7.88% | -16.18% | -23.68% | -40.87% | -38.67% | -32.56% | -23.79% | -8.74% | -3.60% | -13.23% | -49.30% | -82.72% | -96.34% | -147.91% | -77.01% | -110.13% | -133.98% | -53.76% |
February 3, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $6,700K ÷ $1,338,600K
= 0.50%
GameStop Corp's return on equity (ROE) has shown significant fluctuations over the past few years. The company had a positive ROE of 0.50% on February 3, 2024, indicating a marginal return being generated on shareholders' equity. However, this positive trend followed several periods of negative ROE figures, with the lowest being -147.91% on May 2, 2020.
The negative ROE figures suggest that GameStop Corp was not efficiently utilizing shareholders' equity to generate profits during those periods. The ROE values below 0% indicate that the company's net income was not sufficient to cover the cost of equity, resulting in value destruction for shareholders.
Overall, the fluctuating ROE trend indicates that GameStop Corp has been facing challenges in profitability and efficient capital utilization, which could be attributed to factors such as changes in the competitive landscape, shifts in consumer preferences, or operational inefficiencies. Investors and stakeholders should closely monitor the company's strategies and financial performance to assess its ability to improve ROE and create sustainable value in the future.