GameStop Corp (GME)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,338,600 | 1,322,300 | 1,602,500 | 436,700 | 611,500 |
| Debt-to-capital ratio | 0.01 | 0.02 | 0.02 | 0.33 | 0.41 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,700K ÷ ($17,700K + $1,338,600K)
= 0.01
The debt-to-capital ratio of GameStop Corp has exhibited fluctuations over the past five fiscal years. As of February 3, 2024, the ratio stands at 0.01, which indicates a minimal level of debt compared to the company's total capital. This represents a significant decrease from the prior year when the ratio was 0.02.
In contrast, the ratio was notably higher in the preceding years, with values of 0.33 as of January 30, 2021, and 0.41 as of February 1, 2020. These higher ratios suggest a relatively higher proportion of debt in the company's capital structure during those periods.
The recent decrease in the debt-to-capital ratio for GameStop Corp could reflect a strategic shift towards reducing debt levels or a strengthening of the company's capital base. Investors and stakeholders may view the current lower ratio positively as it signifies lower financial risk associated with higher debt obligations. However, it is important to monitor future trends in the debt-to-capital ratio to assess the company's overall financial health and leverage position.