EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

GameStop Corp., economic profit calculation

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 operating profit after taxes (NOPAT)¹	(85,929)	(228,718)	(333,718)	(85,038)	(355,014)	(781,477)
Cost of capital²	3.04%	2.96%	2.87%	2.99%	3.75%	4.11%
Invested capital³	1,857,700)	1,936,100)	2,440,500)	1,656,300)	1,926,200)	2,995,218)

Economic profit⁴	(142,452)	(285,946)	(403,874)	(134,636)	(427,331)	(904,549)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -85,929 – 3.04% × 1,857,700 = -142,452

The financial performance, as measured by economic profit, demonstrates a consistent pattern of negative value creation over the observed period. While the magnitude of the economic loss has fluctuated, the company has not generated positive economic profit in any of the reported years.

Net Operating Profit After Taxes (NOPAT): NOPAT consistently registers as a negative value throughout the period, ranging from approximately -781.5 million to -85.9 million. The most substantial loss occurred in 2019, with subsequent years showing a general, though uneven, reduction in the size of the loss. The latest reported value for 2024 indicates a further, albeit smaller, decrease in the negative NOPAT compared to 2023.
Cost of Capital: The cost of capital exhibits a decreasing trend from 4.11% in 2019 to a low of 2.87% in 2022. It then experiences a slight increase to 2.96% in 2023 and further to 3.04% in 2024. This suggests a fluctuating risk profile or changes in market conditions impacting the company’s funding costs.
Invested Capital: Invested capital decreased from approximately 2,995.2 million in 2019 to 1,656.3 million in 2021. A subsequent increase to 2,440.5 million was observed in 2022, followed by a decrease to 1,936.1 million in 2023 and a further reduction to 1,857.7 million in 2024. This indicates a dynamic capital structure with periods of capital reduction and reinvestment.
Economic Profit: Economic profit, calculated as NOPAT less the cost of capital applied to invested capital, remains negative across all periods. The largest economic loss occurred in 2019 at approximately -904.5 million. The magnitude of the loss decreased over time, reaching -142.5 million in 2024. This reduction in economic loss is attributable to both the improvement in NOPAT and the fluctuations in invested capital, partially offset by changes in the cost of capital. Despite the decreasing losses, the company continues to destroy economic value.

The observed trend suggests that while the company has made some progress in reducing its economic losses, it has not yet achieved a level of profitability sufficient to cover its cost of capital and generate positive economic profit. Continued monitoring of NOPAT, cost of capital, and invested capital is warranted to assess future value creation potential.

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GameStop Corp., NOPAT calculation

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)
Deferred income tax expense (benefit)¹	(100)	(2,600)	(16,300)	82,300)	61,500)	(54,600)
Increase (decrease) in allowance²	2,200)	(1,100)	(300)	(9,600)	9,200)	(3,700)
Increase (decrease) in deferred revenue³	(83,300)	69,600)	22,400)	3,400)	(7,700)	(8,200)
Increase (decrease) in equity equivalents⁴	(81,200)	65,900)	5,800)	76,100)	63,000)	(66,500)
Interest expense	—)	—)	26,900)	34,000)	38,500)	56,800)
Interest expense, operating lease liability⁵	35,032)	32,895)	25,989)	35,573)	31,517)	49,942)
Adjusted interest expense	35,032)	32,895)	52,889)	69,573)	70,017)	106,742)
Tax benefit of interest expense⁶	(7,357)	(6,908)	(11,107)	(14,610)	(14,704)	(22,416)
Adjusted interest expense, after taxes⁷	27,676)	25,987)	41,782)	54,963)	55,313)	84,326)
Interest income	(49,500)	(9,500)	—)	(1,900)	(11,300)	(5,700)
Investment income, before taxes	(49,500)	(9,500)	—)	(1,900)	(11,300)	(5,700)
Tax expense (benefit) of investment income⁸	10,395)	1,995)	—)	399)	2,373)	1,197)
Investment income, after taxes⁹	(39,105)	(7,505)	—)	(1,501)	(8,927)	(4,503)
(Income) loss from discontinued operations, net of tax¹⁰	—)	—)	—)	700)	6,500)	(121,800)
Net operating profit after taxes (NOPAT)	(85,929)	(228,718)	(333,718)	(85,038)	(355,014)	(781,477)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income (loss).

⁵ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 574,300 × 6.10% = 35,032

⁶ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 35,032 × 21.00% = 7,357

⁷ Addition of after taxes interest expense to net income (loss).

⁸ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 49,500 × 21.00% = 10,395

⁹ Elimination of after taxes investment income.

¹⁰ Elimination of discontinued operations.

Net Income (Loss): The net income (loss) showed a significant improvement over the period analyzed. Initially, the company recorded substantial losses, with the highest loss of -673,000 thousand USD in the fiscal year ending February 2, 2019. Over the subsequent years, the losses decreased considerably, falling to -215,300 thousand USD by January 30, 2021. Despite a temporary increase in losses to -381,300 thousand USD in January 29, 2022, the downward trend continued with losses reducing to -313,100 thousand USD by January 28, 2023. Notably, the fiscal year ending February 3, 2024, marked a pivotal turnaround, with the company achieving a small positive net income of 6,700 thousand USD.
Net Operating Profit After Taxes (NOPAT): NOPAT also exhibited a trend of decreasing losses throughout the measured periods. The most significant loss of -781,477 thousand USD occurred in February 2, 2019, which subsequently improved to -355,014 thousand USD by February 1, 2020. This improvement paused temporarily in January 29, 2022, when NOPAT declined to -333,718 thousand USD after reaching a low of -85,038 thousand USD on January 30, 2021. The losses for NOPAT decreased again to -228,718 thousand USD in January 28, 2023, followed by a slight decline to -85,929 thousand USD in the most recent period ending February 3, 2024.
Overall Trends and Insights: The financial performance over the six-year span indicates a movement from deep operating and net losses toward stabilization and eventual profitability. Both net income and NOPAT figures show a marked reduction in losses, reflecting possible operational restructuring or improved market conditions. The positive net income in the most recent year suggests that the company may have effectively addressed key challenges impacting profitability. However, NOPAT remains negative, indicating ongoing operating inefficiencies or costs yet to be fully mitigated. Continued monitoring of these figures would be crucial to assess whether the trend toward profitability is sustainable.

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GameStop Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Income tax expense (benefit)	6,400)	11,000)	(14,100)	(55,300)	37,600)	41,700)
Less: Deferred income tax expense (benefit)	(100)	(2,600)	(16,300)	82,300)	61,500)	(54,600)
Add: Tax savings from interest expense	7,357)	6,908)	11,107)	14,610)	14,704)	22,416)
Less: Tax imposed on investment income	10,395)	1,995)	—)	399)	2,373)	1,197)
Cash operating taxes	3,462)	18,513)	13,307)	(123,389)	(11,569)	117,519)

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).

Income tax expense (benefit): The income tax expense experienced significant fluctuations over the examined years. Beginning with a positive tax expense of 41,700 thousand USD in early 2019, it decreased slightly to 37,600 thousand USD by early 2020. Notably, the company reported a tax benefit in 2021 and 2022, with negative values of -55,300 thousand USD and -14,100 thousand USD, respectively. This indicates that rather than paying taxes, the company recognized tax benefits or refunds during these two years. From 2023 onward, the tax expense reverted to positive figures, with 11,000 thousand USD in 2023 and a further decrease to 6,400 thousand USD in early 2024. Overall, the data points reveal a transition from tax liabilities to tax benefits and back to reduced tax expenses, reflecting potentially changing profitability, tax strategies, or accounting adjustments.
Cash operating taxes: Cash operating taxes show a highly volatile and irregular trend throughout the period. In 2019, cash operating taxes were substantially positive at 117,519 thousand USD. However, this shifted dramatically in 2020 and 2021 to large negative amounts of -11,569 thousand USD and -123,389 thousand USD, respectively, possibly indicating tax refunds or credits received in these years. The trend reversed again in 2022, with a positive cash tax outflow of 13,307 thousand USD, which slightly increased to 18,513 thousand USD in 2023, before dropping significantly to 3,462 thousand USD in early 2024. This volatility suggests considerable fluctuations in tax cash payments, perhaps influenced by changes in taxable income, tax planning, or timing differences in tax settlements.

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GameStop Corp., invested capital calculation (financing approach)

US$ in thousands

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Current portion of long-term debt	10,800)	10,800)	4,100)	121,700)	—)	349,200)
Borrowings under revolving line of credit	—)	—)	—)	25,000)	—)	—)
Long-term debt, excluding current portion	17,700)	28,700)	40,500)	216,000)	419,800)	471,600)
Operating lease liability¹	574,300)	577,100)	604,400)	684,100)	768,700)	802,918)
Total reported debt & leases	602,800)	616,600)	649,000)	1,046,800)	1,188,500)	1,623,718)
Stockholders’ equity	1,338,600)	1,322,300)	1,602,500)	436,700)	611,500)	1,336,200)
Net deferred tax (assets) liabilities²	(17,300)	(18,200)	(16,300)	—)	(82,300)	(147,200)
Allowance³	4,400)	2,200)	3,300)	3,600)	13,200)	4,000)
Deferred revenue⁴	128,600)	211,900)	142,300)	119,900)	116,500)	124,200)
Equity equivalents⁵	115,700)	195,900)	129,300)	123,500)	47,400)	(19,000)
Accumulated other comprehensive (income) loss, net of tax⁶	83,600)	71,900)	68,700)	49,300)	78,800)	54,300)
Adjusted stockholders’ equity	1,537,900)	1,590,100)	1,800,500)	609,500)	737,700)	1,371,500)
Construction-in-progress⁷	(5,400)	(19,000)	(9,000)	—)	—)	—)
Marketable securities⁸	(277,600)	(251,600)	—)	—)	—)	—)
Invested capital	1,857,700)	1,936,100)	2,440,500)	1,656,300)	1,926,200)	2,995,218)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of equity equivalents to stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction-in-progress.

⁸ Subtraction of marketable securities.

Total Reported Debt & Leases: The total reported debt and leases demonstrate a clear downward trend over the reported periods. Beginning at approximately 1.62 billion US dollars in early 2019, the debt significantly decreases to around 1.19 billion by early 2020, continuing to decline in subsequent years, reaching approximately 603 million by early 2024. This consistent reduction indicates a strategic effort to deleverage or reduce liabilities.
Stockholders’ Equity: The stockholders’ equity shows a volatile pattern with initial declines followed by a strong recovery. Equity dropped sharply from about 1.34 billion in 2019 to 612 million in 2020, and further down to 437 million in 2021, reflecting potential losses or other negative impacts. However, a notable turnaround occurs in 2022, with equity rising dramatically to 1.6 billion and slightly decreasing to around 1.34 billion near 2024. This recovery may be indicative of improved profitability or capital restructuring efforts.
Invested Capital: Invested capital closely follows the trends observed in debt and equity, exhibiting a general decline from 3.0 billion in early 2019 to about 1.66 billion in early 2021. A significant rebound is evident in 2022, with invested capital climbing back to roughly 2.44 billion, before declining once again to approximately 1.86 billion by early 2024. This fluctuation suggests shifts in capital deployment and possibly changes in operational scale or investment strategy during these years.

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GameStop Corp., cost of capital calculations

Feb 3, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	4,741,035)	4,741,035)	÷	5,340,335)	=	0.89	0.89	×	2.84%	=	2.52%
Debt, net³	25,000)	25,000)	÷	5,340,335)	=	0.00	0.00	×	0.85% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	574,300)	574,300)	÷	5,340,335)	=	0.11	0.11	×	6.10% × (1 – 21.00%)	=	0.52%
Total:	5,340,335)					1.00					3.04%

Based on: 10-K (reporting date: 2024-02-03).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

Jan 28, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	7,053,236)	7,053,236)	÷	7,663,436)	=	0.92	0.92	×	2.84%	=	2.61%
Debt, net³	33,100)	33,100)	÷	7,663,436)	=	0.00	0.00	×	0.85% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	577,100)	577,100)	÷	7,663,436)	=	0.08	0.08	×	5.70% × (1 – 21.00%)	=	0.34%
Total:	7,663,436)					1.00					2.96%

Based on: 10-K (reporting date: 2023-01-28).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

Jan 29, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	6,696,479)	6,696,479)	÷	7,338,579)	=	0.91	0.91	×	2.84%	=	2.59%
Debt, net³	37,700)	37,700)	÷	7,338,579)	=	0.01	0.01	×	0.85% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	604,400)	604,400)	÷	7,338,579)	=	0.08	0.08	×	4.30% × (1 – 21.00%)	=	0.28%
Total:	7,338,579)					1.00					2.87%

Based on: 10-K (reporting date: 2022-01-29).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

Jan 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	12,711,536)	12,711,536)	÷	13,769,736)	=	0.92	0.92	×	2.84%	=	2.62%
Debt, net³	374,100)	374,100)	÷	13,769,736)	=	0.03	0.03	×	7.86% × (1 – 21.00%)	=	0.17%
Operating lease liability⁴	684,100)	684,100)	÷	13,769,736)	=	0.05	0.05	×	5.20% × (1 – 21.00%)	=	0.20%
Total:	13,769,736)					1.00					2.99%

Based on: 10-K (reporting date: 2021-01-30).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

Feb 1, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	273,302)	273,302)	÷	1,451,402)	=	0.19	0.19	×	2.84%	=	0.53%
Debt, net³	409,400)	409,400)	÷	1,451,402)	=	0.28	0.28	×	6.75% × (1 – 21.00%)	=	1.50%
Operating lease liability⁴	768,700)	768,700)	÷	1,451,402)	=	0.53	0.53	×	4.10% × (1 – 21.00%)	=	1.72%
Total:	1,451,402)					1.00					3.75%

Based on: 10-K (reporting date: 2020-02-01).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

Feb 2, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	1,034,946)	1,034,946)	÷	2,666,765)	=	0.39	0.39	×	2.84%	=	1.10%
Debt, net³	828,900)	828,900)	÷	2,666,765)	=	0.31	0.31	×	6.22% × (1 – 21.00%)	=	1.53%
Operating lease liability⁴	802,918)	802,918)	÷	2,666,765)	=	0.30	0.30	×	6.22% × (1 – 21.00%)	=	1.48%
Total:	2,666,765)					1.00					4.11%

Based on: 10-K (reporting date: 2019-02-02).

¹ US$ in thousands

² Equity. See details »

³ Debt, net. See details »

⁴ Operating lease liability. See details »

GameStop Corp., economic spread ratio calculation, comparison to benchmarks

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	(142,452)	(285,946)	(403,874)	(134,636)	(427,331)	(904,549)
Invested capital²	1,857,700)	1,936,100)	2,440,500)	1,656,300)	1,926,200)	2,995,218)
Performance Ratio
Economic spread ratio³	-7.67%	-14.77%	-16.55%	-8.13%	-22.19%	-30.20%
Benchmarks
Economic Spread Ratio, Competitors⁴
Amazon.com Inc.	-5.29%	-10.82%	-21.76%	-2.00%	—	—
Home Depot Inc.	12.92%	16.98%	21.43%	12.27%	—	—
Lowe’s Cos. Inc.	18.71%	13.71%	21.68%	9.23%	—	—
TJX Cos. Inc.	7.29%	4.35%	4.37%	-12.49%	—	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -142,452 ÷ 1,857,700 = -7.67%

⁴ Click competitor name to see calculations.

The economic spread ratio exhibited a fluctuating, yet generally improving, trend over the observed period. Initially negative, the ratio demonstrates a reduction in magnitude, suggesting an increasing ability to generate returns exceeding the cost of capital, although remaining below profitability.

Economic Spread Ratio Trend: The economic spread ratio began at -30.20% in February 2019 and decreased to -22.19% in February 2020. A significant improvement was then noted in January 2021, with the ratio reaching -8.13%. This improvement was followed by a rise to -16.55% in January 2022, and a further increase to -14.77% in January 2023. The most recent period, ending February 2024, shows a continued positive movement, with the ratio reaching -7.67%.

The invested capital figures show a decrease from February 2019 to January 2021, followed by an increase in January 2022, and then a slight decrease through February 2024. This fluctuation in invested capital occurs alongside the changes in the economic spread ratio, potentially influencing the overall economic profit.

Economic Profit and Invested Capital Relationship: Economic profit consistently remained negative throughout the period, ranging from -904,549 to -142,452. While the magnitude of the economic loss decreased over time, it did not transition to a positive value. The observed trend in the economic spread ratio suggests that the rate of economic loss is diminishing, potentially due to improvements in operational efficiency or capital allocation, despite the fluctuations in invested capital.

The narrowing of the negative economic spread ratio indicates a gradual improvement in the company’s ability to cover its cost of capital. However, continued negative economic profit suggests that further improvements are necessary to achieve positive economic value creation.

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GameStop Corp., economic profit margin calculation, comparison to benchmarks

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Selected Financial Data (US$ in thousands)
Economic profit¹	(142,452)	(285,946)	(403,874)	(134,636)	(427,331)	(904,549)

Net sales	5,272,800)	5,927,200)	6,010,700)	5,089,800)	6,466,000)	8,285,300)
Add: Increase (decrease) in deferred revenue	(83,300)	69,600)	22,400)	3,400)	(7,700)	(8,200)
Adjusted net sales	5,189,500)	5,996,800)	6,033,100)	5,093,200)	6,458,300)	8,277,100)
Performance Ratio
Economic profit margin²	-2.75%	-4.77%	-6.69%	-2.64%	-6.62%	-10.93%
Benchmarks
Economic Profit Margin, Competitors³
Amazon.com Inc.	-3.10%	-6.10%	-11.36%	-0.86%	—	—
Home Depot Inc.	4.74%	5.97%	6.81%	4.62%	—	—
Lowe’s Cos. Inc.	5.62%	3.50%	5.90%	2.92%	—	—
TJX Cos. Inc.	2.84%	1.78%	1.77%	-8.70%	—	—

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).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net sales
= 100 × -142,452 ÷ 5,189,500 = -2.75%

³ Click competitor name to see calculations.

The economic profit margin exhibited a fluctuating, yet generally improving, trend over the observed period. While consistently negative, the magnitude of the economic loss decreased from 2019 to 2024. This suggests a gradual enhancement in the company’s ability to generate returns exceeding its cost of capital, despite continued overall economic losses.

Economic Profit Margin Trend: The economic profit margin began at -10.93% in 2019. A substantial improvement was noted in 2020, with the margin increasing to -6.62%. This positive shift was followed by a further, though smaller, improvement to -2.64% in 2021. The margin then experienced a slight deterioration in 2022, moving to -6.69%. Continued progress was observed in 2023, reaching -4.77%, and this positive trend continued into 2024, with the margin reaching -2.75%.

The economic profit itself also demonstrates a pattern of diminishing losses. The largest economic loss occurred in 2019 at -904,549 US$ in thousands. This decreased significantly to -427,331 US$ in thousands in 2020, and continued to decline to -134,636 US$ in thousands by 2021. While losses increased in 2022 to -403,874 US$ in thousands, they decreased again in 2023 to -285,946 US$ in thousands, and further decreased to -142,452 US$ in thousands in 2024.

Relationship between Adjusted Net Sales and Economic Profit Margin: Adjusted net sales decreased from 8,277,100 US$ in thousands in 2019 to 5,093,200 US$ in thousands in 2021. Sales then increased to 6,033,100 US$ in thousands in 2022, and remained relatively stable at 5,996,800 US$ in thousands in 2023, before decreasing again to 5,189,500 US$ in thousands in 2024. Despite the initial decline in sales, the economic profit margin improved significantly between 2019 and 2021, indicating that factors beyond revenue volume, such as cost management or capital efficiency, played a role in the improved performance. The subsequent fluctuations in both sales and margin suggest a complex interplay of factors influencing profitability.

Overall, the observed trends suggest a gradual improvement in the company’s operational efficiency and capital allocation, as evidenced by the decreasing economic profit margin. However, continued negative economic profit indicates that the company is still not generating returns sufficient to cover its cost of capital.

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GameStop Corp. (NYSE:GME)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin