GameStop Corp. (NYSE:GME)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes shows a fluctuating pattern over the periods analyzed. Initially, there was a significant negative value of -781,477 in early 2019, which improved to -355,014 by early 2020. This positive trend did not continue consistently, as the figure declined to -85,038 in early 2021, then worsened again to -333,718 in early 2022. Subsequent years showed a relative improvement with NOPAT at -228,718 in early 2023 and further to -85,929 in early 2024. Although negative throughout, the fluctuations indicate periods of operational challenges interspersed with some recovery efforts.

Invested Capital

Invested capital experienced notable volatility during the time frame. Starting at 2,995,218 thousand USD in early 2019, it declined substantially to 1,926,200 thousand USD by early 2020, and further to a low of 1,656,300 thousand USD in early 2021. It then rose sharply to 2,440,500 thousand USD in early 2022 before dropping again to 1,936,100 and 1,857,700 thousand USD in early 2023 and 2024, respectively. These shifts indicate changes in the company's asset base or capital structure, possibly reflecting strategic adjustments or fluctuating investment activities.

Return on Invested Capital (ROIC)

Return on invested capital remained negative throughout the periods, reflecting consistent operating losses relative to the capital employed. The ROIC improved from -26.09% in early 2019 to -18.43% in early 2020 and further to -5.13% in early 2021, indicating some operational efficiency gains. However, it deteriorated again to -13.67% in early 2022 and slightly improved to -11.81% and -4.63% in early 2023 and 2024, respectively. Despite the negative returns, the trend suggests intermittent improvements in capital utilization efficiency, though the company has yet to achieve positive ROIC.

The financial metrics show notable trends over the six-year period analyzed. Operating profit margin (OPM) demonstrates a consistent improvement, moving from a negative 8.02% in early 2019 to a less negative 1.59% by early 2024. This suggests a gradual reduction in losses at the operating level, indicating an improving ability to manage operating costs relative to revenue.

Turnover of capital (TO) exhibits some variability throughout the same period. Starting at 2.76 in 2019, it peaked at 3.35 in 2020 before experiencing fluctuations, including a dip to 2.47 in 2022 and a subsequent recovery to 2.79 by 2024. This pattern may reflect changing efficiency in generating revenue from invested capital, with no clear upward or downward trend but moderate oscillation around a mid-range level.

The effective cash tax rate (CTR) remains constant at 100% across all years, indicating consistent tax treatments or effective tax planning measures that maintained this rate despite other financial changes.

Return on invested capital (ROIC) follows a generally improving yet negative trend. Starting from -26.09% in 2019, the ROIC improves considerably until 2021 at -5.13%, but then worsens again in 2022 and 2023 before recovering somewhat to -4.63% in 2024. Although ROIC remains negative, the overall trend shows an enhanced capacity to generate returns on the capital invested, suggesting progress in addressing inefficiencies or losses, albeit with some volatility.

Overall, the data demonstrate a progression toward better operating efficiency and investment returns despite ongoing challenges, while capital turnover remains variable, and tax rate stability suggests a steady fiscal framework.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes shows a consistent negative value throughout the periods, indicating operating losses each year. However, there is a clear overall improvement trend, with losses decreasing from -663,958 thousand US$ in 2019 to -82,468 thousand US$ in 2024. This reduction in losses suggests some degree of operational improvement or cost management, although profitability has not been achieved.

Adjusted Net Sales

Adjusted net sales exhibit a declining trend from 2019 to 2024. The highest sales are observed in 2019 at 8,277,100 thousand US$, while the lowest are in 2024 at 5,189,500 thousand US$. This indicates a reduction in revenue generation over the years, with significant drops in 2020 and 2021, a partial recovery in 2022 and 2023, followed by a further decline in 2024.

Operating Profit Margin (OPM)

The operating profit margin remains negative throughout all periods, reflecting the company's unprofitable operations. Nonetheless, the margin improves gradually from -8.02% in 2019 to -1.59% in 2024, consistent with the decreasing losses in NOPBT. The margin decreases less steeply after 2021, indicating progress towards improved efficiency or cost control despite the ongoing negative margin.

The financial data indicate notable variations in key metrics over the analyzed periods.

Adjusted net sales

Adjusted net sales exhibited a general downward trajectory, declining from 8,277,100 thousand US dollars in early 2019 to 5,189,500 thousand US dollars by early 2024. There was a notable drop between 2019 and 2021, followed by a slight recovery in 2022 and 2023 before declining again in 2024. This pattern suggests fluctuations in revenue generation with no consistent growth trend.

Invested capital

Invested capital decreased from 2,995,218 thousand US dollars in 2019 to approximately 1,857,700 thousand US dollars in 2024. The decline was particularly sharp between 2019 and 2021, followed by a temporary increase in 2022, and then subsequent decreases in the following years. Overall, the invested capital diminished significantly, indicating reduced resource allocation or divestments over the periods.

Turnover of capital (TO)

The turnover of capital ratio displayed variability across the years. Starting at 2.76 in 2019, it increased to a peak of 3.35 in 2020, then declined in 2021 and 2022 to 3.08 and 2.47 respectively. The ratio improved again in 2023 to 3.1 before falling to 2.79 in 2024. This oscillating trend suggests fluctuations in the efficiency of capital usage relative to sales, without establishing a steady pattern of improvement or deterioration.

Considering these observations, the company experienced a decline in both net sales and invested capital over the six-year span, with varying efficiency in capital usage. The data suggest challenges in sustaining revenue growth and maintaining steady investment levels, accompanied by inconsistent capital turnover performance.

The financial data reveals several key trends in the company's operating performance and tax situation over the six-year period from 2019 to 2024.

Cash Operating Taxes

The cash operating taxes exhibited significant fluctuations throughout the analyzed years. In 2019, there was a substantial positive cash tax amount of $117,519 thousand, followed by negative values in 2020 and 2021, indicating tax refunds or benefits, with -$11,569 thousand and -$123,389 thousand respectively. From 2022 to 2024, cash taxes returned to positive figures, though at much lower levels compared to 2019, with amounts of $13,307 thousand, $18,513 thousand, and $3,462 thousand respectively. This pattern points to volatility in taxable income or tax planning outcomes during the period.

Net Operating Profit Before Taxes (NOPBT)

The NOPBT displayed a consistently negative trend, indicating operating losses before taxes for every year analyzed. Beginning at a large negative value of -$663,958 thousand in 2019, losses decreased in magnitude over subsequent years to -$366,583 thousand in 2020 and -$208,427 thousand in 2021. However, this improvement was not sustained, as losses increased again to -$320,411 thousand in 2022, then moderated to -$210,205 thousand in 2023, and further improved to -$82,468 thousand in 2024. Overall, there is a general trend of decreasing operating losses with intermittent setbacks, suggesting efforts towards operational improvement albeit still facing financial challenges.

Effective Cash Tax Rate (CTR)

Data for the effective cash tax rate is not provided for any of the years. Consequently, no analysis can be made on the relationship between cash taxes and operating profit or on the tax burden relative to earnings over time.

In summary, the financial results show that the company has consistently operated at a loss before tax, though these losses have generally become smaller over time with some fluctuations. Cash taxes have been inconsistent, reflecting the variability in taxable income or tax credits. The absence of effective tax rate data limits further tax-related analysis.