GameStop Corp (GME)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,700 | 28,700 | 40,500 | 216,000 | 419,800 |
| Total assets | US$ in thousands | 2,709,000 | 3,113,400 | 3,499,300 | 2,472,600 | 2,819,700 |
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.09 | 0.15 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $17,700K ÷ $2,709,000K
= 0.01
The debt-to-assets ratio of GameStop Corp has shown consistent improvement over the past five years. As of February 3, 2024, the company's debt-to-assets ratio stands at 0.01, indicating that GameStop has very low levels of debt relative to its total assets. This suggests that the company has a strong financial position with a conservative debt structure.
Comparing this to previous years, we see a positive trend in the reduction of debt relative to assets. This demonstrates management's focus on maintaining a healthy balance sheet and minimizing financial risks. In particular, the significant improvement from a ratio of 0.15 in February 2020 to the current level of 0.01 reflects the company's efforts to decrease its debt burden and enhance its financial stability.
Overall, GameStop's consistently low debt-to-assets ratio indicates a prudent approach to financial management and a solid foundation for future growth and capital allocation.