Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

GameStop Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Net income (loss)	6,700)	(313,100)	(381,300)	(215,300)	(470,900)	(673,000)
Depreciation and amortization	56,200)	61,700)	77,200)	80,700)	96,200)	126,900)
Stock-based compensation expense, net	22,200)	40,100)	30,500)	7,900)	8,900)	10,700)
Gain on sale of digital assets	—)	(7,200)	—)	—)	—)	—)
Digital asset impairments	—)	34,000)	—)	—)	—)	—)
Asset impairments	4,800)	2,700)	6,700)	15,500)	385,600)	1,015,900)
Loss (gain) on retirement of debt	—)	—)	18,200)	(1,500)	—)	—)
Deferred income taxes	(100)	(2,600)	(16,300)	80,300)	61,400)	(4,100)
(Gain) loss on disposal of property and equipment, net	1,500)	2,500)	5,400)	(27,300)	1,900)	2,000)
(Gain) loss on divestiture	—)	—)	—)	—)	9,100)	(100,800)
Other, net	800)	1,200)	(3,500)	2,400)	4,100)	(36,200)
Receivables, net	65,000)	(16,800)	(38,400)	39,800)	(10,900)	(34,400)
Merchandise inventories, net	39,900)	229,600)	(329,600)	282,400)	361,100)	12,600)
Prepaid expenses and other assets	10,400)	(25,200)	(6,500)	8,400)	3,600)	2,200)
Prepaid income taxes and income taxes payable	(2,400)	172,400)	(21,700)	(87,000)	(75,900)	(18,700)
Accounts payable and accrued liabilities	(397,700)	(66,200)	224,400)	(78,600)	(792,800)	17,100)
Operating lease right-of-use assets and lease liabilities	(8,100)	(4,900)	(900)	19,000)	4,100)	—)
Changes in other long-term liabilities	(2,900)	—)	1,500)	(3,000)	—)	4,900)
Changes in operating assets and liabilities	(295,800)	288,900)	(171,200)	181,000)	(510,800)	(16,300)
Adjustments to reconcile net income (loss) to net cash flows from operating activities	(210,400)	421,300)	(53,000)	339,000)	56,400)	998,100)
Net cash flows provided by (used in) operating activities	(203,700)	108,200)	(434,300)	123,700)	(414,500)	325,100)
Capital expenditures	(34,900)	(55,900)	(62,000)	(60,000)	(78,500)	(93,700)
Purchases of marketable securities	(326,800)	(276,800)	—)	—)	—)	—)
Proceeds from maturities and sales of marketable securities	312,600)	27,500)	—)	—)	—)	—)
Proceeds from sale of property and equipment	13,100)	—)	—)	95,500)	—)	—)
Proceeds from sale of digital assets	2,800)	81,900)	—)	—)	—)	—)
Proceeds from divestitures, net of cash sold	—)	—)	—)	—)	5,200)	727,900)
Proceeds from company-owned life insurance, net	—)	—)	—)	—)	12,000)	—)
Other	—)	600)	(2,800)	1,400)	400)	1,300)
Net cash flows (used in) provided by investing activities	(33,200)	(222,700)	(64,800)	36,900)	(60,900)	635,500)
Proceeds from issuance of common stock, net of costs	—)	—)	1,672,800)	—)	—)	—)
Net repayments of senior notes	—)	—)	(307,400)	(130,300)	(404,500)	—)
Repurchase of common shares	—)	—)	—)	—)	(198,700)	—)
Proceeds from French term loans	—)	—)	—)	47,100)	—)	—)
Repayments of French term loans	(10,700)	(3,900)	—)	—)	—)	—)
Dividends paid	—)	—)	—)	(300)	(40,500)	(157,400)
Borrowings from the revolver	—)	—)	—)	150,000)	—)	154,000)
Repayments of revolver borrowings	—)	—)	(25,000)	(125,000)	—)	(154,000)
Repayment of acquisition-related debt	—)	—)	—)	—)	—)	(12,200)
Settlement of stock-based awards	(900)	(4,000)	(136,800)	3,100)	(1,000)	(5,100)
Payments of financing costs	—)	—)	(3,000)	—)	—)	—)
Net cash flows provided by (used in) financing activities	(11,600)	(7,900)	1,200,600)	(55,400)	(644,700)	(174,700)
Exchange rate effect on cash, cash equivalents and restricted cash	(8,600)	(1,500)	(16,600)	16,300)	(6,900)	(24,700)
Decrease in cash held for sale	—)	—)	—)	—)	—)	10,200)
Increase (decrease) in cash, cash equivalents and restricted cash	(257,100)	(123,900)	684,900)	121,500)	(1,127,000)	771,400)
Cash, cash equivalents and restricted cash at beginning of period	1,196,000)	1,319,900)	635,000)	513,500)	1,640,500)	869,100)
Cash, cash equivalents and restricted cash at end of period	938,900)	1,196,000)	1,319,900)	635,000)	513,500)	1,640,500)

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).

Net income (loss): The company experienced persistent net losses from 2019 through 2023, with the largest loss recorded in fiscal 2019 at $673 million. Although losses decreased significantly by 2023, culminating in a slight positive net income of $6.7 million in 2024, overall profitability remains limited and volatile.
Depreciation and amortization: This expense shows a declining trend, decreasing steadily from $127 million in 2019 to $56 million in 2024, reflecting either asset disposals, reduced capital investments, or changes in asset valuation methods.
Stock-based compensation expense, net: Stock-based compensation fluctuated over the years, peaking notably in 2022 at $30.5 million and remaining elevated in 2023 at $40.1 million before declining to $22.2 million in 2024. This suggests continued reliance on equity incentives, with variable levels of expense recognition.
Asset impairments: Asset impairments dramatically decreased from $1.02 billion in 2019 to nominal amounts in later years, signaling a substantial write-down in 2019 that has not recurred at similar levels. The reduced impairments may indicate stabilization in asset valuations or less aggressive write-offs.
Changes in working capital components: Receivables, inventories, prepaid expenses, and accounts payable show significant volatility. For example, merchandise inventories swung from positive changes in 2019 and 2020 to a large negative in 2022, then back to positive in 2023 before falling again. Accounts payable and accrued liabilities exhibited sharp negative changes in 2020 and again in 2024, pointing to fluctuating supplier payment cycles and operational adjustments.
Cash flows from operating activities: Operating cash flows have been inconsistent, with a positive balance in 2019 ($325 million) followed by a significant negative outflow in 2020 (-$415 million). Subsequent years show recovery with a positive inflow in 2021, a large negative in 2022, and moderate positive and negative flows in 2023 and 2024 respectively. This volatility aligns with fluctuating net income and working capital changes.
Investing activities: Capital expenditures steadily decreased from $93.7 million in 2019 to $34.9 million in 2024, indicating reduced investment in long-term assets. Purchases of marketable securities began only in 2023 and 2024 with substantial outflows ($276.8 million and $326.8 million), contrasted by relatively smaller inflows from sales or maturities. Proceeds from asset sales appear sporadic but contributed positively in selected years.
Financing activities: Financing cash flows reveal significant debt repayments, common stock issuances, and share repurchases in certain years. Notably, 2022 saw a large inflow of $1.67 billion from stock issuance, while 2020 and 2019 reflected high repayments and share repurchases. Dividend payments sharply declined after 2020. Borrowings and repayments from revolving credit facilities occurred primarily between 2019 and 2021, displaying active debt management.
Cash and cash equivalents: The company’s cash position peaked in early 2020 at $1.64 billion, sharply declined thereafter, with fluctuations following in subsequent years. Ending cash levels were $938.9 million in 2024, down from a high in 2022, reflecting the impact of operating losses, investing outflows, and financing activities.
Overall insights: The data portray a company struggling with profitability and operational cash generation, reliant on equity issuance and debt management to sustain liquidity. Asset impairments and restructuring appear significant factors in the financial results, with reduced capital expenditures and sizable fluctuations in working capital items affecting cash flow stability. Strategic emphasis on cash management and operational restructuring is implied to manage ongoing challenges.

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GameStop Corp. (NYSE:GME)

Cash Flow Statement