GameStop Corp (GME)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,875,400 | 2,709,000 | 2,709,000 | 3,113,400 | 3,113,400 |
| Total stockholders’ equity | US$ in thousands | 4,929,800 | 1,338,600 | 1,338,600 | 1,322,300 | 1,322,300 |
| Financial leverage ratio | 1.19 | 2.02 | 2.02 | 2.35 | 2.35 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,875,400K ÷ $4,929,800K
= 1.19
The financial leverage ratio of GameStop Corp has shown a downward trend over the years, decreasing from 2.35 in January 2023 to 1.19 in January 2025. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that GameStop Corp has improved its financial stability and reduced the risk associated with debt, which could positively impact its overall financial health and ability to weather economic downturns.