GameStop Corp (GME)
Financial leverage ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,709,000 | 3,146,900 | 2,803,700 | 3,070,200 | 3,113,400 | 3,322,500 | 2,799,500 | 3,125,500 | 3,499,300 | 3,762,000 | 3,545,800 | 2,562,700 | 2,472,600 | 2,601,400 | 2,375,200 | 2,469,000 | 2,819,700 | 3,145,600 | 2,987,900 | 3,633,300 |
| Total stockholders’ equity | US$ in thousands | 1,338,600 | 1,262,800 | 1,267,200 | 1,271,600 | 1,322,300 | 1,245,000 | 1,343,500 | 1,450,700 | 1,602,500 | 1,754,900 | 1,852,000 | 879,500 | 436,700 | 332,200 | 352,300 | 435,000 | 611,500 | 617,100 | 809,700 | 1,291,700 |
| Financial leverage ratio | 2.02 | 2.49 | 2.21 | 2.41 | 2.35 | 2.67 | 2.08 | 2.15 | 2.18 | 2.14 | 1.91 | 2.91 | 5.66 | 7.83 | 6.74 | 5.68 | 4.61 | 5.10 | 3.69 | 2.81 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,709,000K ÷ $1,338,600K
= 2.02
The financial leverage ratio of GameStop Corp has shown significant fluctuations over the periods indicated. The financial leverage ratio measures the company's level of debt in relation to its equity, reflecting its reliance on debt financing.
From February 2024 to May 2021, the financial leverage ratio remained relatively stable, ranging between 1.91 and 2.67, indicating a moderate level of debt compared to equity. However, starting from July 2021, there was a notable increase in the ratio, peaking at 7.83 in January 2021 and then declining but remaining high.
The high financial leverage ratio during the latter periods suggests that GameStop Corp has significantly increased its debt levels relative to equity, indicating potential financial risk and vulnerability to economic downturns or challenges in meeting its debt obligations.
It is essential for stakeholders and investors to monitor GameStop Corp's financial leverage ratio closely to assess the company's overall financial health and risk profile, as high levels of leverage can impact the company's ability to generate returns and withstand market volatility.