GameStop Corp (GME)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 131,200 | 63,000 | 108,700 | 90,800 | 120,000 | 54,100 | -11,800 | -59,200 | -106,600 | -55,600 | -4,600 | -48,800 | -93,000 | -249,900 | -406,800 | -470,000 | -522,800 | -561,600 | -558,300 | -505,800 |
| Total stockholders’ equity | US$ in thousands | 4,929,800 | 4,804,500 | 4,383,400 | 1,307,300 | 1,338,600 | 1,338,600 | 1,262,800 | 1,262,800 | 1,267,200 | 1,267,200 | 1,271,600 | 1,271,600 | 1,322,300 | 1,322,300 | 1,245,000 | 1,245,000 | 1,343,500 | 1,343,500 | 1,450,700 | 1,602,500 |
| ROE | 2.66% | 1.31% | 2.48% | 6.95% | 8.96% | 4.04% | -0.93% | -4.69% | -8.41% | -4.39% | -0.36% | -3.84% | -7.03% | -18.90% | -32.67% | -37.75% | -38.91% | -41.80% | -38.48% | -31.56% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $131,200K ÷ $4,929,800K
= 2.66%
The return on equity (ROE) of GameStop Corp has shown a significant improvement over the past few quarters. Starting from a negative ROE of -31.56% in January 2022, the company's ROE has gradually improved to 2.66% by January 2025. This positive trend indicates that GameStop is getting better at generating profit from shareholders' equity.
The company managed to turn around its negative ROE, indicating potential operational improvements, strategic changes, or efficiency gains. The upwards trend in ROE suggests better utilization of the company's resources and indicates a healthier financial position.
Despite the improvement, the ROE of GameStop Corp is still relatively low, hovering around single-digit percentages, which may indicate that there is still room for further enhancement in the company's profitability and efficiency.
Overall, the positive movement of GameStop Corp's return on equity over the analyzed period reflects an encouraging sign of progress and potential for continued growth in shareholder value.