Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
GameStop Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
- Current Liabilities
- Current liabilities as a percentage of total liabilities and stockholders’ equity exhibit notable volatility. After peaking around 54.9% in late 2018, the ratio declined to approximately 33% in mid-2022, followed by intermittent fluctuations reaching near 47.82% in late 2022 before settling around 32.79% in mid-2024. The current portion of operating lease liabilities consistently contributed between 5.6% and 10.1% from early 2019 onward. The current portion of long-term debt showed a significant decrease from a peak near 16.9% in mid-2020 to under 0.5% by mid-2024. Borrowings under revolving credit lines were sporadically recorded, peaking at 5.47% in mid-2020 before disappearing from subsequent periods.
- Accounts Payable and Accrued Liabilities
- Accounts payable demonstrated fluctuating trends, initially high near 31.2% in late 2018, declining notably around early 2022 to a range between 7.77% and 12.38%, and then again rising sharply to 26.74% in late 2022 before normalizing around 10.93% in mid-2024. Accrued liabilities and other current liabilities showed modest variation, generally ranging from approximately 15% to 25%, with some reduction observed in mid-2021 and early 2024, reflecting occasional shifts in short-term obligations.
- Long-Term Liabilities
- Long-term debt, excluding current portions, declined steadily from a high near 19% in early 2018 to below 1% by mid-2024, indicating significant debt repayment or restructuring. Operating lease liabilities, excluding current portions, increased gradually from 15.21% in late 2018 to a peak around 20% in mid-2020, before moderately decreasing and stabilizing near 14-15% towards 2024. Other long-term liabilities demonstrated minimal fluctuations but displayed a temporary rise to over 4% in early 2022, then declining below 2% subsequently.
- Total Liabilities
- Total liabilities as a percentage of total liabilities and stockholders’ equity increased substantially from around 49.32% in early 2018 to a peak near 87.23% in late 2020, followed by a marked reduction to roughly 50% by mid-2024. The variation suggests a phase of intensifying leverage or increased obligations culminating around 2020, then a strategic deleveraging or balance sheet improvement in the ensuing years.
- Stockholders’ Equity Components
- Stockholders’ equity exhibited an almost inverse trend to liabilities, beginning near 50.68% in early 2018, declining to approximately 12.77% near late 2020, then recovering sharply to exceed 50% by mid-2024. This recovery is largely attributable to substantial increases in additional paid-in capital, progressing from negligible levels before 2020 to over 63% by mid-2024. Retained earnings (loss) showed a steady decline from over 50% in early 2018 to negative values around -9% by mid-2024, indicating accumulated losses or negative earnings over the periods. Accumulated other comprehensive loss gradually increased in magnitude negatively, indicating growing unrealized losses or other comprehensive expenses impacting equity.
- Overall Capital Structure Insights
- The company’s financial structure underwent significant transformation over the period analyzed. Initially characterized by relatively balanced liabilities and equity proportions, the trend towards higher leverage materialized up to late 2020, as evidenced by rising total liabilities ratios. Thereafter, a reversal occurred with increased equity injections, likely through capital raises given the surge in additional paid-in capital, alongside decreased debt levels. The persistent negative retained earnings and growing comprehensive loss suggest operational or other challenges affecting profitability, mitigated somewhat by enhanced equity financing. Current liabilities remained a substantial and variable component, while the decline in long-term debt signals active liability management or refinancing strategies. Lease obligations remained material and relatively stable throughout the period.
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