GameStop Corp (GME)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -16,500 | -42,200 | 53,600 | 60,900 | 96,800 | 25,000 | -62,600 | -106,300 | -150,000 | -87,000 | -24,200 | -58,400 | -96,300 | -248,000 | -402,000 | -463,100 | -533,600 | -595,300 | -590,400 | -539,600 |
| Long-term debt | US$ in thousands | — | — | — | — | 17,700 | — | — | 20,000 | — | 23,600 | — | 26,300 | — | 28,700 | — | 28,800 | — | 32,100 | — | — |
| 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 |
| Return on total capital | -0.33% | -0.88% | 1.22% | 4.66% | 7.14% | 1.87% | -4.96% | -8.29% | -11.84% | -6.74% | -1.90% | -4.50% | -7.28% | -18.36% | -32.29% | -36.36% | -39.72% | -43.28% | -40.70% | -33.67% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-16,500K ÷ ($—K + $4,929,800K)
= -0.33%
GameStop Corp's return on total capital has shown a declining trend from January 2022 to January 2025. The ratio has been negative for most of the period, indicating that the company has not been generating sufficient returns from the capital invested in its operations. However, there has been a slight improvement in the most recent periods, with the ratio moving from negative to slightly positive territory. This improvement suggests that GameStop may be starting to generate better returns on its total capital, although the ratio remains close to breakeven. Overall, the return on total capital indicates the efficiency with which the company is utilizing its capital to generate profits, and a positive trend in this ratio would be a positive signal for investors.