GameStop Corp (GME)
Debt-to-equity 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-equity ratio | 0.01 | 0.02 | 0.03 | 0.49 | 0.69 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $17,700K ÷ $1,338,600K
= 0.01
The debt-to-equity ratio of GameStop Corp has exhibited a declining trend over the past five fiscal years. As of February 3, 2024, the company's debt-to-equity ratio stands at 0.01, indicating a significantly low level of debt relative to equity. This could signify a conservative financial structure with a strong emphasis on equity financing rather than borrowing. In comparison to the high ratio of 0.69 as of February 1, 2020, the current ratio suggests a substantial reduction in debt reliance and a potential improvement in financial stability. The decreasing trend in the debt-to-equity ratio may imply a strategic shift towards a more balanced capital structure and improved risk management by GameStop Corp.