Analysis of Debt
Total Debt (Carrying Amount)
GameStop Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).
A significant and consistent reduction in the total debt carrying amount is observed from February 2, 2019, to February 3, 2024. Total debt net decreased from US$ 820.8 million to US$ 28.5 million over this period, representing a substantial deleveraging of the balance sheet.
- Total Debt Trajectory
- The most pronounced decline occurred between January 30, 2021, and January 29, 2022, where total debt fell from US$ 362.7 million to US$ 44.6 million. This sharp reduction indicates a rapid acceleration in debt repayment or retirement during that fiscal window. The downward trend persisted through February 3, 2024, reflecting a strategic transition toward a minimal debt profile.
- Long-Term Debt Analysis
- Long-term debt, excluding the current portion, demonstrated a steady decline from US$ 471.6 million in 2019 to US$ 17.7 million in 2024. This continuous reduction suggests a systematic elimination of long-term liabilities, significantly lowering the company's long-term financial leverage.
- Current Obligations and Short-Term Borrowings
- The current portion of long-term debt experienced a dramatic decrease from US$ 349.2 million in 2019 to US$ 10.8 million by February 2024. A temporary increase in short-term liabilities was observed in January 2021, characterized by US$ 25 million in borrowings under a revolving line of credit; however, this facility was fully cleared in subsequent periods, indicating that short-term credit was used for transient liquidity needs rather than long-term financing.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Debt (Fair Value)
| Feb 3, 2024 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Revolving credit facility due 2022 | —) |
| French Term Loans | 25,000) |
| 5.5% Senior Notes due 2019 | —) |
| 6.75% Senior Notes due 2021 | —) |
| 10.00% Senior Notes due 2023 | —) |
| Total debt, net (fair value) | 25,000) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.88 |
Based on: 10-K (reporting date: 2024-02-03).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 0.85%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 0.70% | 20,000) | 140) | |
| 1.00% | 20,000) | 200) | |
| Total | 40,000) | 340) | |
| 0.85% | |||
Based on: 10-K (reporting date: 2024-02-03).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 340 ÷ 40,000 = 0.85%