GameStop Corp. (NYSE:GME)

The financial data over the periods show a general downward trend in the value of intangible assets and related categories.

Goodwill

Goodwill was reported at $363,900 thousand in the earliest period but is absent in subsequent periods, indicating it may have been written off or reclassified beyond the first reported year.

Digital Assets

Digital assets appear only in the latest period with a recorded value of $100 thousand, suggesting a new emergence or recognition of this asset class.

Trade Names and Intangible Assets with Indefinite Lives

Trade names and intangible assets with indefinite lives exhibit a continuous decline from $8,800 thousand to $5,100 thousand, reflecting amortization or impairment.

Leasehold Rights

Leasehold rights decreased steadily from $91,800 thousand down to $67,300 thousand, which may result from amortization or lease expirations.

Other Intangible Assets

The "Other" intangible assets category decreased from $32,500 thousand to $21,300 thousand, suggesting a reduction or write-down over time.

Intangible Assets with Finite Lives

The gross carrying amount for intangible assets with finite lives peaked at $126,000 thousand but has declined to $88,600 thousand by the last period. Accumulated amortization, while negative, decreased in magnitude from -$99,600 thousand to -$87,200 thousand, implying ongoing amortization expense.

The net carrying amount of these finite-lived intangible assets decreased sharply from $24,700 thousand to $1,400 thousand, indicating significant amortization or disposals.

Total Intangible Assets

The aggregate intangible assets decreased from $33,500 thousand to $6,500 thousand, in line with the downward trends observed in its components.

Goodwill and Intangible Assets Combined

The combined figure for goodwill and intangible assets fell dramatically from $397,400 thousand in the first period to $6,500 thousand in the most recent period, highlighting substantial reductions in these asset classifications over time.

Overall, the data suggests a significant decrease in the value of intangible assets and goodwill throughout the years, likely due to amortization, impairments, or disposals. The emergence of digital assets in the latest period marks a minimal but notable change in asset composition. The continued decline in intangible asset values could impact future earnings through reduced amortization expense but may also indicate previous impairments or strategic asset management decisions.

The data reveals several notable trends and fluctuations across the six-year period.

Total Assets

Reported total assets decreased significantly from US$4,044,300 thousand in 2019 to US$2,819,700 thousand in 2020 and further declined in 2021 to US$2,472,600 thousand. However, there was a reversal of this downward trend in 2022, with assets increasing to US$3,499,300 thousand, followed by a decline again in 2023 to US$3,113,400 thousand and further to US$2,709,000 thousand in 2024. The adjusted total assets follow the same pattern starting from 2020 as the adjustments appear to primarily affect the 2019 figure.

Stockholders’ Equity

Reported stockholders’ equity experienced considerable volatility. From US$1,336,200 thousand in 2019, equity dropped sharply to US$611,500 thousand in 2020 and further to US$436,700 thousand in 2021. Thereafter, a significant increase occurred in 2022, climbing to US$1,602,500 thousand, with a slight decline in 2023 to US$1,322,300 thousand and a marginal increase in 2024 to US$1,338,600 thousand. Adjusted equity mirrors this trend, except for 2019, where adjusted equity was lower than reported.

Net Income (Loss)

The reported net income shows persistent losses from 2019 through 2023, albeit with a decreasing loss magnitude from -US$673,000 thousand in 2019 to -US$313,100 thousand in 2023. Intriguingly, in 2024, the company reported a small positive net income of US$6,700 thousand. The adjusted net income presents a different narrative for 2019 only, showing a positive figure of US$297,700 thousand instead of the reported loss, while it aligns with reported losses from 2020 onward until the minor profit in 2024.

Overall Observations

The company’s asset base contracted significantly in the initial years but partially rebounded in 2022 before declining again. Equity also followed a volatile pattern with a sharp decrease until 2021 and substantial recovery in 2022, reflecting potentially strategic changes or capital restructuring. The shift from persistent losses to a small profit in the latest reporting period may indicate improving operational performance or successful cost management strategies. The adjustments, especially noted in 2019 figures, suggest that goodwill or other intangible assets had a significant impact on reported values during that year.

Net Profit Margin Trends

The reported net profit margin exhibits a negative trend from fiscal year 2019 through 2023, with values consistently below zero, ranging from -8.12% in 2019 to -5.28% in 2023, before turning slightly positive to 0.13% in 2024. The adjusted net profit margin follows a similar pattern but starts positively at 3.59% in 2019, declines into negative territory by 2020, and remains negative until 2023, converging with the reported figure at 0.13% in 2024. This indicates that adjustments primarily impact early years and that the company faces sustained profitability challenges until a slight recovery in 2024.

Total Asset Turnover Patterns

Both reported and adjusted total asset turnover ratios show a peak in 2020 at 2.29, followed by a decline to a low of 1.72 in 2022. A moderate recovery is observed in 2023 and 2024, with values increasing to 1.9 and 1.95 respectively. The close alignment between reported and adjusted figures suggests minimal impact of goodwill adjustments on asset turnover. Overall, asset utilization efficiency declined after 2020 but has shown signs of improvement in the latest periods.

Financial Leverage Dynamics

Reported financial leverage increased sharply from 3.03 in 2019 to 5.66 in 2021, indicating growing reliance on debt or other liabilities, before contracting notably to 2.02 by 2024. Adjusted financial leverage values follow the same trajectory, starting higher at 3.79 in 2019 but converging with reported figures thereafter. This pattern reflects a peak in leverage around 2021 with a subsequent deleveraging phase, potentially aimed at reducing financial risk.

Return on Equity (ROE) Behavior

Reported ROE is persistently negative from 2019 through 2023, with the worst performance in 2020 at -77.01%, indicating significant shareholder value erosion during this period. The metric improves significantly by 2024 to a slightly positive 0.5%. The adjusted ROE is notably higher in 2019 at 30.62% but turns negative from 2020 onward, aligning with reported ROE by 2021, before also exhibiting improvement in 2024. Adjustments seem to have a pronounced effect only in the earlier period.

Return on Assets (ROA) Analysis

Reported ROA remains negative across the entire period from -16.64% in 2019 to a minor positive value of 0.25% in 2024, mirroring trends in profitability. Adjusted ROA starts positive at 8.09% in 2019 but shifts into negative territory by 2020 and remains slightly negative until 2023, with convergence to the reported figure by 2024. This trend indicates ongoing challenges in generating returns on assets, with a potential turn towards marginal profitability in the latest fiscal year.

Summary Insights

Overall, the financial data reflects a company experiencing profitability and performance difficulties throughout the observation period, with substantial losses and declining efficiency notably evident between 2019 and 2023. Financial leverage peaked in 2021 but was successfully reduced by 2024, indicating efforts to mitigate financial risk. The gradual recovery in profitability and returns observed in 2024 across multiple metrics, including net profit margin, ROE, and ROA, suggests early signs of stabilization or turnaround. Adjustments primarily influence earlier period results, underscoring the impact of goodwill on reported figures during those years.

The financial data reveals distinct trends in net income and profit margin over the six-year period. Both reported and adjusted net income figures begin with negative values, indicating losses, but show notable fluctuations across the years. The reported net income loss decreases significantly from -673,000 thousand USD in 2019 to -215,300 thousand USD by 2021, then worsens in 2022 at -381,300 thousand USD and slightly improves in 2023 to -313,100 thousand USD, followed by a positive turning point in 2024 with a small profit of 6,700 thousand USD. The adjusted net income follows a similar path but begins with a positive figure in 2019, demonstrating an initial adjustment that affects comparability to later years where the adjusted net income mirrors the reported values, including the loss magnitudes and eventual small profit in 2024.

Net Income Trends

Reported net income exhibits a general improvement from 2019 to 2021, shrinking losses by more than two-thirds, followed by an adverse reversal in 2022 and 2023, before moving into positive territory in 2024.

Adjusted net income shows a positive value in 2019, suggesting adjustments that improve reported losses, but aligns closely with reported losses in subsequent years, including the 2024 recovery.

Profit Margin Trends

Reported net profit margin reflects persistent negative profitability throughout 2019 to 2023, with marginal improvement in 2021 but worsening again in 2022 and 2023, before achieving slight positive profitability in 2024 at 0.13%.

Adjusted net profit margin starts positive in 2019 but becomes negative from 2020 to 2023, paralleling the reported margin's downward trend, and also turns slightly positive in 2024.

Overall Insights

The data indicates a company struggling with consistent profitability, marked by substantial net losses over multiple years. Both reported and adjusted figures display closely aligned trends from 2020 onwards, emphasizing consistent financial challenges. The modest positive net income and profit margin in 2024 suggest an initial step toward financial recovery, possibly reflecting operational improvements or accounting adjustments. However, the margins remain very low, indicating that profitability is only just being regained.

Reported and Adjusted Total Assets

The reported total assets show a declining trend overall from 4,044,300 thousand US dollars in February 2019 to 2,709,000 thousand US dollars in February 2024. There is a significant decrease between 2019 and 2020, dropping from 4,044,300 to 2,819,700 thousand US dollars, followed by a further reduction to 2,472,600 thousand in 2021. An increase is observed in 2022 to 3,499,300 thousand, before declining again in the subsequent years to the 2024 figure of 2,709,000 thousand. The adjusted total assets, which exclude goodwill, follow a similar trend but start lower at 3,680,400 thousand US dollars in 2019, converging with the reported assets by 2020 and then tracking identically from 2020 through 2024.

Reported and Adjusted Total Asset Turnover

The reported total asset turnover ratio has fluctuated over the analyzed period. It started at 2.05 in 2019, increased slightly to 2.29 in 2020, and then declined to 2.06 in 2021. A more pronounced decrease occurred in 2022, reaching 1.72, before partially recovering to 1.90 in 2023 and 1.95 in 2024. The adjusted total asset turnover shows an initially higher ratio of 2.25 in 2019 but otherwise matches the reported turnover from 2020 onwards, indicating that goodwill adjustments mainly impacted the 2019 figure. This suggests that operational efficiency in asset utilization dipped notably in 2022 but has been gradually improving since then.

Insights

The data reflects a general contraction in asset base between 2019 and 2021, followed by a temporary asset increase in 2022, and a subsequent return to decline. The decline in total assets might indicate divestitures, impairment, or reduction in asset holdings. Correspondingly, total asset turnover experienced variability, with the lowest point in 2022 suggesting a period of decreased operational efficiency relative to assets held. The partial rebound in turnover ratios by 2023 and 2024 indicates some improvement in asset utilization efficiency. The close alignment of adjusted and reported figures from 2020 onwards suggests a reduced impact of goodwill on the asset base after 2019.

Total Assets

There is a noticeable decline in total reported assets from 4,044,300 thousand US dollars in 2019 to 2,709,000 thousand US dollars in 2024. The adjusted total assets follow a similar trend, decreasing from 3,680,400 thousand US dollars in 2019 to 2,709,000 thousand US dollars in 2024. This suggests a significant reduction in the asset base over the six-year period, with an initial sharp drop between 2019 and 2020 followed by some fluctuations before a final decline.

Stockholders’ Equity

Reported stockholders’ equity experiences a substantial decrease from 1,336,200 thousand US dollars in 2019 to 436,700 thousand US dollars in 2021. Subsequently, it shows a recovery to 1,602,500 thousand US dollars in 2022 before stabilizing around 1,338,600 thousand US dollars in 2024. The adjusted stockholders’ equity mirrors this pattern but starts at a lower base of 972,300 thousand US dollars in 2019. The trends indicate periods of equity erosion during 2019 to 2021 followed by improvement and relative stabilization.

Financial Leverage

Reported financial leverage ratios increase sharply from 3.03 in 2019 to a peak of 5.66 in 2021, indicating rising liabilities relative to equity during this period. After 2021, the ratio declines significantly to 2.02 in 2024, suggesting reduced leverage and potentially lower financial risk. Adjusted financial leverage displays a similar progression but starts higher at 3.79 in 2019 due to adjustments, before matching the reported ratios in later years. The overall leverage pattern reflects an initial period of increased indebtedness followed by deleveraging and strengthening of the equity base in relation to liabilities.

Goodwill Adjustment Impact

The adjustment for goodwill primarily affects the 2019 figures, where both total assets and stockholders’ equity are notably reduced when adjusted. From 2020 onwards, adjusted and reported figures converge, indicating that goodwill adjustments had a significant impact in 2019 but minimal or no impact in subsequent years.

The financial data reveals significant volatility and overall challenges in profitability over the analyzed periods, with some notable improvements in the most recent year.

Net Income (Loss)

The reported net income shows a consistent loss from 2019 through 2023, with the magnitude of losses decreasing from -673 million USD in 2019 to -313 million USD in 2023. The trend reflects some improvement in reducing losses over time, culminating in a slight positive income of 6.7 million USD in 2024. The adjusted net income figures support this trend, although the 2019 figure was positive at 298 million USD, likely reflecting adjustments such as goodwill impairments or non-recurring items not included in the reported figure. From 2020 onward, adjusted net income closely parallels reported net income, indicating alignment between adjusted and reported losses except in the latest year where a return to profit is evident.

Stockholders’ Equity

Reported stockholders’ equity experienced a sharp decline from 1.34 billion USD in 2019 to a low of approximately 437 million USD in 2021, suggesting significant asset write-downs or retained loss impact. From 2021 forward, equity increased substantially to 1.6 billion USD in 2022 before moderating to around 1.33 billion USD in 2024. Adjusted stockholders’ equity, which excludes goodwill and other adjustments, shows a consistent relationship, starting lower in 2019 at about 972 million USD but following the same general trend thereafter, indicating that goodwill and intangible assets comprised a substantial portion of equity initially but lessened over time.

Return on Equity (ROE)

Reported ROE exhibits deep negative values from 2019 through 2023, with an improving trend from -77.01% in 2020 to approximately -23.68% in 2023. The improvement is consistent with decreasing losses and receding equity depletion pressures. The adjusted ROE displays a more variable picture, starting with a positive 30.62% in 2019 but turning negative thereafter, aligning more closely with reported ROE from 2020 onward. By 2024, both reported and adjusted ROE converge to a slightly positive 0.5%, corresponding to the minimal positive net income and stabilized equity base, potentially signaling a turning point toward profitability and better capital efficiency.

Overall, the trends indicate a company undergoing substantial restructuring or facing ongoing operational challenges, with significant losses impacting equity in initial years. The recent return to positive net income and ROE suggests emerging stabilization. Stockholders’ equity recovery and convergence of reported and adjusted figures imply a reduction of non-cash or non-operational impairments over time, enhancing the quality of equity. Continued monitoring will be essential to confirm sustained improvement.

Net Income (Loss) Trends

The reported net income shows a consistent pattern of losses from 2019 through 2023, with the magnitude of these losses decreasing over time until a slight positive income is observed in 2024. The largest loss occurred in 2019 at -673 million USD, narrowing significantly to a modest gain of 6.7 million USD by 2024. The adjusted net income, which excludes goodwill effects, diverges notably in 2019. It indicates a positive net income of approximately 298 million USD that year, contrasting sharply with the reported loss. However, from 2020 onwards, the adjusted and reported net incomes align closely, showing losses until the return to slight profitability in 2024.

Total Assets Patterns

Reported total assets declined noticeably from over 4 billion USD in 2019 to around 2.7 billion USD by 2024, reflecting a significant reduction in asset base. The adjusted total assets, which account for goodwill write-downs, are consistently lower than the reported figures only in 2019 but match reported amounts thereafter. This adjustment highlights the impact that goodwill impairments had in the initial year but indicates stability or absence of such adjustments in subsequent years.

Return on Assets (ROA) Analysis

Reported ROA follows a negative trajectory from 2019 to 2023, starting at approximately -16.6% and improving incrementally to about -10%. A small positive ROA of 0.25% is seen in 2024, coinciding with the shift to net profitability. The adjusted ROA shows a significant difference in 2019, registering a positive 8.09% compared to the reported negative figure, due to exclusion of goodwill impairments. From 2020 to 2024, adjusted ROA matches the reported ROA, indicating the absence of goodwill effects in these years and consistently negative returns until the improvement in 2024.

Summary of Observations

Overall, the data shows a company experiencing substantial financial challenges through most of the period, with large net losses and declining asset values. Goodwill adjustments notably affect early period performance indicators, suggesting impairment charges in 2019. From 2020 onwards, both reported and adjusted figures converge, reflecting a clearer view of operational performance. Improved profitability and returns in 2024 hint at a potential financial turnaround or stabilization phase.