Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
GameStop Corp., liquidity ratios
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).
- Current Ratio
- The current ratio exhibited a declining trend from 1.43 in 2019 to 1.16 in 2021, indicating a reduction in short-term liquidity during this period. However, from 2021 onwards, a notable improvement is observed, with the ratio increasing significantly to 1.92 in 2022, slightly decreasing to 1.74 in 2023, and then rising again to 2.11 in 2024. This suggests an enhanced ability to cover current liabilities with current assets in the most recent years.
- Quick Ratio
- The quick ratio showed a continuous decline from 0.81 in 2019 to a low of 0.46 in 2021, reflecting a reduction in liquid assets relative to current liabilities. Starting from 2021, the ratio improved notably, reaching 1.04 in 2022, further increasing to 1.15 in 2023, and 1.38 in 2024. This indicates a strengthening in the company’s near-cash asset position relative to its short-term obligations.
- Cash Ratio
- The cash ratio followed a similar pattern, decreasing from 0.74 in 2019 to 0.38 in 2021, suggesting a diminished coverage of current liabilities by cash and cash equivalents during those years. From 2021, a marked recovery is visible, with the ratio nearly doubling to 0.94 in 2022, then increasing steadily to 1.04 in 2023 and 1.28 in 2024. This trend points to substantial improvement in the company’s liquidity, particularly in readily available cash resources.
Current Ratio
GameStop Corp., current 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) | |||||||
| Current assets | 1,974,200) | 2,323,700) | 2,598,800) | 1,551,200) | 1,633,700) | 3,127,700) | |
| Current liabilities | 934,500) | 1,339,100) | 1,354,700) | 1,342,700) | 1,237,700) | 2,181,100) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.11 | 1.74 | 1.92 | 1.16 | 1.32 | 1.43 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 1.06 | 1.05 | 0.94 | 1.14 | 1.05 | — | |
| Home Depot Inc. | 1.35 | 1.41 | 1.01 | 1.23 | 1.08 | — | |
| Lowe’s Cos. Inc. | 1.23 | 1.10 | 1.02 | 1.19 | 1.01 | — | |
| TJX Cos. Inc. | 1.21 | 1.21 | 1.27 | 1.46 | 1.24 | — | |
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.11 | 1.10 | 0.98 | 1.17 | 1.06 | — | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | 1.22 | 1.20 | 1.15 | 1.25 | 1.18 | — | |
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 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,974,200 ÷ 934,500 = 2.11
2 Click competitor name to see calculations.
- Current Assets
- Current assets showed a fluctuating trend over the analyzed period. Initially, there was a significant decrease from 3,127,700 thousand US dollars in early 2019 to 1,633,700 thousand US dollars in early 2020, followed by a slight further decline to 1,551,200 thousand US dollars in early 2021. However, a noticeable recovery occurred in early 2022, when current assets rose to 2,598,800 thousand US dollars, before experiencing a gradual decline again over the next two years, ending at 1,974,200 thousand US dollars in early 2024.
- Current Liabilities
- Current liabilities demonstrated a general downward trend throughout the period. From 2,181,100 thousand US dollars in early 2019, liabilities decreased consistently, with slight fluctuations, reaching their lowest at 934,500 thousand US dollars by early 2024. This reduction indicates an improvement in the company's short-term obligations over time.
- Current Ratio
- The current ratio, reflecting liquidity, exhibited considerable variation. Beginning at 1.43 in early 2019, it declined to its lowest point of 1.16 in early 2021, suggesting a weakening liquidity position during that time. Subsequently, the ratio improved markedly, rising to 1.92 in early 2022 and maintaining a relatively strong level with 1.74 in early 2023 and reaching 2.11 by early 2024. This return and improvement above the initial position indicate enhanced ability to cover short-term liabilities with current assets.
Quick Ratio
GameStop Corp., quick 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) | |||||||
| Cash and cash equivalents | 921,700) | 1,139,000) | 1,271,400) | 508,500) | 499,400) | 1,624,400) | |
| Marketable securities | 277,600) | 251,600) | —) | —) | —) | —) | |
| Receivables, net of allowance | 91,000) | 153,900) | 141,100) | 105,300) | 141,900) | 134,200) | |
| Total quick assets | 1,290,300) | 1,544,500) | 1,412,500) | 613,800) | 641,300) | 1,758,600) | |
| Current liabilities | 934,500) | 1,339,100) | 1,354,700) | 1,342,700) | 1,237,700) | 2,181,100) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.38 | 1.15 | 1.04 | 0.46 | 0.52 | 0.81 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.84 | 0.81 | 0.69 | 0.86 | 0.83 | — | |
| Home Depot Inc. | 0.32 | 0.26 | 0.20 | 0.47 | 0.23 | — | |
| Lowe’s Cos. Inc. | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 | — | |
| TJX Cos. Inc. | 0.59 | 0.59 | 0.64 | 1.01 | 0.50 | — | |
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.73 | 0.68 | 0.57 | 0.77 | 0.68 | — | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | 0.90 | 0.85 | 0.81 | 0.92 | 0.88 | — | |
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 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,290,300 ÷ 934,500 = 1.38
2 Click competitor name to see calculations.
The analysis of the financial data reveals notable fluctuations and trends in liquidity measures over the six-year period.
- Total Quick Assets
- The total quick assets exhibited a significant decline from 1,758,600 thousand US dollars in 2019 to a low of 613,800 thousand in 2021. However, there was a recovery trend from 2021 onwards, increasing to 1,412,500 thousand in 2022 and peaking at 1,544,500 thousand in 2023 before slightly decreasing to 1,290,300 thousand in 2024. This indicates an initial depletion followed by a substantial replenishment of liquid assets.
- Current Liabilities
- Current liabilities decreased sharply from 2,181,100 thousand US dollars in 2019 to 1,237,700 thousand in 2020, after which they rose modestly to 1,347,700 thousand in 2021 and remained relatively stable through 2023. A marked reduction occurred in 2024, with current liabilities falling to 934,500 thousand. This general downward trend in current liabilities, especially the drop in the latest period, likely reflects improved management of short-term obligations.
- Quick Ratio
- The quick ratio mirrors the trends in quick assets and current liabilities. Starting below 1 at 0.81 in 2019, it declined further to 0.46 in 2021, indicating a potential liquidity risk during that period. From 2022 onwards, the quick ratio improved significantly, surpassing 1.0 and reaching 1.38 in 2024, which suggests solid liquidity and a strong ability to cover short-term liabilities with quick assets.
Overall, the data indicates that liquidity was constrained in the early part of the period, with a recovery beginning in 2022. Improved quick assets combined with a reduction in current liabilities have resulted in a marked improvement in the quick ratio, reflecting enhanced short-term financial stability as of the most recent fiscal year.
Cash Ratio
GameStop Corp., cash 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) | |||||||
| Cash and cash equivalents | 921,700) | 1,139,000) | 1,271,400) | 508,500) | 499,400) | 1,624,400) | |
| Marketable securities | 277,600) | 251,600) | —) | —) | —) | —) | |
| Total cash assets | 1,199,300) | 1,390,600) | 1,271,400) | 508,500) | 499,400) | 1,624,400) | |
| Current liabilities | 934,500) | 1,339,100) | 1,354,700) | 1,342,700) | 1,237,700) | 2,181,100) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.28 | 1.04 | 0.94 | 0.38 | 0.40 | 0.74 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.56 | 0.53 | 0.45 | 0.68 | 0.67 | — | |
| Home Depot Inc. | 0.17 | 0.12 | 0.08 | 0.34 | 0.12 | — | |
| Lowe’s Cos. Inc. | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 | — | |
| TJX Cos. Inc. | 0.54 | 0.53 | 0.59 | 0.97 | 0.45 | — | |
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.49 | 0.44 | 0.37 | 0.61 | 0.54 | — | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | 0.51 | 0.48 | 0.47 | 0.63 | 0.58 | — | |
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 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,199,300 ÷ 934,500 = 1.28
2 Click competitor name to see calculations.
- Cash Assets Trend
- Total cash assets experienced a significant decline from approximately 1,624,400 thousand USD in February 2019 to 499,400 thousand USD in February 2020. This lower level remained relatively stable through January 2021 but increased notably to 1,271,400 thousand USD by January 2022. The upward trend continued in January 2023, reaching 1,390,600 thousand USD, followed by a modest decrease to 1,199,300 thousand USD in February 2024.
- Current Liabilities Trend
- Current liabilities displayed a marked reduction from 2,181,100 thousand USD in February 2019 to 1,237,700 thousand USD in February 2020. After a slight increase to 1,342,700 thousand USD in January 2021, these liabilities stabilized around 1,350,000 thousand USD in January 2022 and January 2023, before decreasing substantially to 934,500 thousand USD by February 2024.
- Cash Ratio Behavior
- The cash ratio initially declined sharply from 0.74 in February 2019 to 0.40 in February 2020, and then marginally decreased further to 0.38 in January 2021, indicating a relatively weaker short-term liquidity position during these years. However, starting January 2022, the liquidity position improved significantly, with the ratio rising to 0.94, and further increasing to 1.04 in January 2023. The most recent data from February 2024 shows an even higher ratio of 1.28, demonstrating enhanced cash coverage against current liabilities.
- Overall Insights
- The financial data reveals a transition from a period of declining cash assets and relatively high current liabilities towards an improved liquidity position. The concurrent increase in total cash assets and decrease in current liabilities from 2022 onward contributes to a stronger cash ratio, surpassing the 1.0 mark in recent years. This suggests a more conservative approach to managing short-term obligations and a greater reliance on readily available cash to meet current liabilities.