GameStop Corp (GME)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,875,400 | 6,240,200 | 5,536,300 | 2,587,100 | 2,709,000 | 2,837,400 | 3,146,900 | 3,146,900 | 2,803,700 | 2,803,700 | 3,070,200 | 3,070,200 | 3,113,400 | 3,113,400 | 3,322,500 | 3,322,500 | 2,799,500 | 2,799,500 | 3,125,500 | 3,499,300 |
| Total stockholders’ equity | US$ in thousands | 4,929,800 | 4,804,500 | 4,383,400 | 1,307,300 | 1,338,600 | 1,338,600 | 1,262,800 | 1,262,800 | 1,267,200 | 1,267,200 | 1,271,600 | 1,271,600 | 1,322,300 | 1,322,300 | 1,245,000 | 1,245,000 | 1,343,500 | 1,343,500 | 1,450,700 | 1,602,500 |
| Financial leverage ratio | 1.19 | 1.30 | 1.26 | 1.98 | 2.02 | 2.12 | 2.49 | 2.49 | 2.21 | 2.21 | 2.41 | 2.41 | 2.35 | 2.35 | 2.67 | 2.67 | 2.08 | 2.08 | 2.15 | 2.18 |
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 shows the company's level of debt relative to its equity over time. The trend in this ratio indicates how reliant the company is on debt financing.
From January 31, 2022, to January 31, 2023, the leverage ratio fluctuated between 2.08 and 2.41, reflecting some variability in the company's debt levels during this period.
However, there was a significant increase to 2.67 by October 31, 2022, suggesting a higher level of financial leverage at that point. Subsequently, the ratio decreased to 2.12 by January 31, 2024, and continued to decline to 1.19 by January 31, 2025, indicating a reduction in the company's reliance on debt financing.
The decrease in the financial leverage ratio from October 31, 2024, to January 31, 2025, might indicate either a decrease in debt levels, an increase in equity, or a combination of both. A lower financial leverage ratio generally indicates a lower risk of financial distress due to lower debt obligations. Investors and analysts typically view a decreasing trend in the financial leverage ratio positively as it signifies a healthier balance sheet structure.