GameStop Corp (GME)
Solvency ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 |
| Debt-to-capital ratio | 0.00 | 0.01 | 0.00 | 0.00 | 0.02 |
| Debt-to-equity ratio | 0.00 | 0.01 | 0.00 | 0.00 | 0.02 |
| Financial leverage ratio | 1.19 | 2.02 | 2.02 | 2.35 | 2.35 |
GameStop Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively. Here is a detailed analysis based on the provided data:
- Debt-to-assets ratio: This ratio shows the proportion of GameStop's assets financed by debt. The trend over the years indicates that GameStop has been able to reduce its reliance on debt to fund its assets, with the ratio fluctuating between 0.00 and 0.01. A lower ratio suggests less financial risk and better financial health.
- Debt-to-capital ratio: This ratio measures the extent of GameStop's capital structure that is financed by debt. The data shows a similar trend to the debt-to-assets ratio, with the ratio fluctuating between 0.00 and 0.01. A lower ratio indicates a lower level of financial risk and better capital structure.
- Debt-to-equity ratio: This ratio compares GameStop's total debt to its equity, reflecting the company's leverage and financial risk. The trend mirrors the previous ratios, showing a reduction in debt levels relative to equity. The ratio ranges between 0.00 and 0.01, indicating a favorable debt-to-equity position.
- Financial leverage ratio: This ratio assesses the company's overall leverage, measuring GameStop's total assets relative to its equity. The decreasing trend from 2.35 to 1.19 indicates that GameStop has been steadily reducing its leverage over the years, which is a positive sign of financial stability and lower risk.
In conclusion, GameStop Corp's solvency ratios demonstrate a healthy financial position with a decreasing trend in debt levels and leverage ratios, indicating improved financial stability and lower risk of default. The company's ability to effectively manage its debt and capital structure is reflected in these solvency ratios, which bodes well for its long-term financial health.
Coverage ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | — | -73.68 | -76.00 |
The interest coverage ratio reveals the ability of GameStop Corp to meet its interest obligations using its operating income. A negative interest coverage indicates that the company's operating income is insufficient to cover its interest expenses.
Based on the data provided, GameStop Corp has shown a consistently negative interest coverage ratio over the periods specified. In January 28, 2023, the interest coverage was -76.00, and in January 31, 2023, it was -73.68. Unfortunately, there is no data available for the subsequent periods.
The negative interest coverage ratios suggest that GameStop Corp may be facing challenges in generating enough operating income to cover its interest expenses. This situation can raise concerns about the company's financial health and its ability to handle its debt obligations effectively.
It is crucial for GameStop Corp to improve its interest coverage ratio to ensure its long-term viability and financial stability. Investors, creditors, and stakeholders closely monitor this ratio as it provides insights into the company's debt repayment capacity and overall financial risk.