GameStop Corp (GME)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | 0.09 | 0.08 | 0.09 | 0.00 | 0.15 | 0.13 | 0.14 | 0.13 |
| Debt-to-capital ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.00 | 0.33 | 0.39 | 0.38 | 0.00 | 0.41 | 0.40 | 0.34 | 0.27 |
| Debt-to-equity ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.00 | 0.49 | 0.65 | 0.61 | 0.00 | 0.69 | 0.68 | 0.52 | 0.36 |
| 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 |
GameStop Corp's solvency ratios show a consistent and stable financial position over the periods analyzed. The debt-to-assets ratio has remained low at 0.01 throughout the recent quarters, indicating that GameStop has a minimal level of debt relative to its total assets.
The debt-to-capital ratio and debt-to-equity ratio have also been relatively stable and low, indicating that GameStop relies minimally on debt for its capital structure. The ratios range from 0.01 to 0.03 for both metrics, showing a conservative approach to leverage.
The financial leverage ratio, which measures the company's total assets relative to equity, has fluctuated more than the other ratios but remains within a manageable range. The ratio has ranged from 1.91 to 7.83 but has generally remained below 3. This suggests that GameStop has not been overly reliant on borrowed funds to finance its operations and investments.
Overall, the solvency ratios paint a picture of GameStop as having a strong financial position with low debt levels and a reasonable capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.62 | -1.58 | -4.01 | -10.87 | -28.59 | -97.19 | -212.56 | -171.96 | -13.75 | -5.63 | -3.44 | -3.49 | -7.43 | -8.80 | -8.74 | -24.58 | -14.93 | -13.76 | -21.06 | -10.92 |
The interest coverage ratio of GameStop Corp indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio is usually preferred as it signifies that the company has more earnings to cover its interest payments.
Based on the data provided, GameStop Corp's interest coverage ratio has been consistently low and even negative over the past few quarters, indicating a concerning trend. The negative values suggest that the company's EBIT is insufficient to cover its interest expenses. This raises red flags about the company's financial health and ability to meet its debt obligations.
The significant decline in the interest coverage ratio over the periods suggests deteriorating financial performance and potentially unsustainable debt levels. Investors, creditors, and stakeholders may view this as a risk factor, as the company may struggle to service its debt and may face challenges in the long term.
GameStop Corp's management should closely monitor the interest coverage ratio and take necessary steps to improve it, such as increasing profitability, reducing debt levels, or restructuring debt obligations to avoid potential financial distress.