GameStop Corp (GME)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 | 0.01 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.02 | 0.00 | 0.00 |
| 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 |
The solvency ratios of GameStop Corp provide insights into its financial health and ability to meet its debt obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of total assets financed by debt. GameStop Corp's debt-to-assets ratio has remained consistently low, fluctuating between 0.00% and 0.01% from January 2022 to January 2025. This indicates that the company has been successful in managing its debt levels relative to its asset base.
2. Debt-to-capital ratio: This ratio shows the proportion of total capital that is financed by debt. GameStop Corp's debt-to-capital ratio has also been relatively low, hovering around 0.00% to 0.02% during the same period. The company's capital structure indicates a conservative approach to debt financing.
3. Debt-to-equity ratio: This ratio compares the amount of debt to shareholders' equity. GameStop Corp's debt-to-equity ratio has shown a similar trend to the debt-to-capital ratio, staying at low levels between 0.00% and 0.02% over the analyzed period. This suggests that the company relies more on equity financing than debt.
4. Financial leverage ratio: This ratio measures the extent to which a company is using debt to finance its operations. GameStop Corp's financial leverage ratio has shown some fluctuation, from 1.19 to 2.67, during the period. The lower ratios in recent periods indicate a reduced reliance on debt financing, which can be seen as a positive sign for financial stability.
Overall, based on the solvency ratios analysis, GameStop Corp appears to have a sound financial position with low levels of debt relative to its assets, capital, and equity. The company's conservative approach to debt management and decreasing reliance on debt financing suggest a solid foundation for meeting its financial obligations and sustaining long-term success.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | — | 2.16 | -2.70 | -3.23 | -3.52 | -2.34 | -0.76 | -2.26 | -4.86 | -17.84 | -50.25 | -92.62 | -266.80 | -248.04 | -203.59 | -179.87 |
Based on the provided data, the interest coverage ratio of GameStop Corp has shown a significant improvement over time. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
At the beginning of the period in January 2022, GameStop Corp had a very low interest coverage ratio of -179.87, indicating a risk of default on its interest obligations. However, the company managed to improve its interest coverage ratio steadily over the following quarters, reaching a low point of -266.80 in July 31, 2022.
From October 29, 2022, the interest coverage ratio began to improve significantly, reaching -50.25. GameStop Corp continued to enhance its interest coverage ratio, and by January 31, 2024, the ratio turned positive to 2.16, indicating that the company was generating enough operating income to cover its interest expenses.
It is essential to note that from February 3, 2024, the interest coverage data is missing, so the trend beyond that date cannot be analyzed based on the information provided.
Overall, the steady improvement in GameStop Corp's interest coverage ratio from a negative position to positive territory reflects a positive change in the company's financial health and its ability to meet its interest payment obligations. This improvement suggests that GameStop Corp has successfully managed its debt and operational performance to enhance its financial stability.