GameStop Corp. (NYSE:GME)

Land

The value of land held shows a significant decline from 2019 to 2023, dropping from 18,700 thousand USD to 600 thousand USD by early 2023, with a slight uptick in 2024 where data is incomplete but indicates less than prior years. This suggests potential disposals or revaluation impacting the land asset base.

Buildings and leasehold improvements

This category exhibits a consistent downward trend over the entire period, decreasing from 638,200 thousand USD in 2019 to 384,100 thousand USD in 2024. The reduction signals ongoing depreciation, asset sales, or possible impairment, reflecting a shrinking investment in or utilization of properties and leasehold improvements.

Fixtures and equipment

Fixtures and equipment values decrease steadily from 900,200 thousand USD in 2019 to 332,100 thousand USD in 2024. The drop is quite pronounced between 2020 and 2022, indicating significant asset retirements or write-downs during this period.

Software and hardware

Recorded only from 2022 onwards, software and hardware assets started at 291,200 thousand USD and peaked slightly at 306,300 thousand USD in 2023 before declining to 224,500 thousand USD in 2024. This pattern suggests recent investments followed by reductions which may be due to amortization or impairment.

Construction-in-progress

Also reported starting 2022, construction-in-progress shows an increase from 9,000 thousand USD to 19,000 thousand USD in 2023 but decreases to 5,400 thousand USD in 2024. This indicates active capital projects that are being completed or paused within the latest years.

Property and equipment, gross

The gross value of property and equipment consistently declines from 1,557,100 thousand USD in 2019 to 946,100 thousand USD in 2024, mirroring the trends in individual asset categories and reflecting overall reductions in asset holdings or net book value before depreciation.

Accumulated depreciation

Accumulated depreciation decreases in magnitude (less negative) from -1,235,800 thousand USD in 2019 to -851,200 thousand USD in 2024, which is somewhat unusual. This reduction in accumulated depreciation could be due to asset disposals, reclassifications, or adjustments in depreciation methods or estimates.

Property and equipment, net

Net property and equipment show a pronounced decline from 321,300 thousand USD in 2019 to 94,900 thousand USD in 2024, demonstrating a consistent erosion of the net asset base over the period. This decreases may suggest reduced capital investment, asset disposals exceeding capital expenditures, or increased impairment losses.

Average Age Ratio

The average age ratio exhibits a consistent upward trend over the six-year period, increasing from 80.33% in early 2019 to 89.97% by early 2024. This indicates a gradual aging of the property, plant, and equipment assets, suggesting that a larger proportion of the assets are approaching the end of their useful life.

Estimated Total Useful Life

The estimated total useful life fluctuates modestly throughout the period, starting at 16 years in 2019 and reaching a peak of 19 years in 2023, before settling at 17 years in 2024. This indicates some variability in asset lifespan estimates, possibly due to changes in asset composition or updates in depreciation policies.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets generally increases over time, moving from 13 years in both 2019 and 2020, to a high of 17 years in 2023 before slightly decreasing to 15 years in 2024. This pattern suggests a mix of aging assets and potential acquisitions or disposals influencing the average age.

Estimated Remaining Life

The estimated remaining life remains relatively low and stable, declining from 3 years in the initial three years to 2 years from 2022 onward. This reflects that the bulk of the assets are nearing the end of their useful life, which may require planning for substantial reinvestment or asset replacement in the near term.

The analysis of the annual property, plant, and equipment data reveals several notable trends over the six-year period ending February 3, 2024.

Accumulated Depreciation

This metric shows a consistent decline from $1,235,800 thousand in 2019 to $851,200 thousand in 2024. The downward trend indicates a reduction in total depreciation accumulated over the years, which may reflect asset write-offs, disposals, or changes in asset management strategy.

Property and Equipment, Gross

Gross property and equipment also decrease steadily, from $1,557,100 thousand in 2019 to $946,100 thousand in 2024. This significant reduction suggests a contraction in the asset base, possibly due to divestitures, asset sales, or a deliberate downsizing of physical assets.

Land

The value assigned to land shows considerable fluctuation. Starting at $18,700 thousand in 2019, it decreases gradually to $600 thousand in 2023, with an observed omission for the 2024 figure. The steep drop especially after 2020 indicates possible sales or revaluation of land assets.

Average Age Ratio

The average age ratio, expressed as a percentage, steadily increases from 80.33% in 2019 to 89.97% in 2024. This upward trend suggests that the asset base is aging, potentially indicating reduced investment in new property and equipment or slower asset replacement cycles.

Overall, the data displays a declining trend in gross property and equipment and accumulated depreciation, alongside an increasing average age of assets. This combination could imply a strategy focused on asset reduction or optimization, with older assets being retained longer and less reinvestment in new physical assets. Fluctuations in land value further support possible changes in asset composition or strategic realignment.

Property and equipment, gross

The gross value of property and equipment exhibits a consistent downward trend from February 2019 through February 2024. It decreased from approximately $1,557,100 thousand in 2019 to $946,100 thousand in 2024, reflecting a significant reduction over the six-year period. This decline suggests a continuous divestiture, reduced capital expenditure, or asset disposals during this timeframe.

Land

The recorded value of land has shown a marked decrease overall, dropping sharply from $18,700 thousand in 2019 to only $600 thousand by 2023, with a similar low value recorded in 2024. The most notable drop occurred between the 2020 and 2021 fiscal years, where the value fell from $18,000 thousand to $4,600 thousand. This reduction likely indicates land sales or impairments affecting the land holdings.

Depreciation expense

Depreciation expense steadily declined over the years, starting at $96,700 thousand in 2019 and falling to $55,300 thousand by 2024. The downward trajectory suggests either a shrinking depreciable asset base or changes in depreciation policies. The consistent decrease aligns with the reduction in gross property and equipment values, confirming diminished asset levels subject to depreciation.

Estimated total useful life

The estimated total useful life of property and equipment fluctuated moderately between 16 and 19 years during the period under review. Starting at 16 years in 2019, it rose to 17 years in 2021, peaked at 19 years in 2023, and then settled back to 17 years in 2024. These variations indicate periodic reassessments of asset longevity, which could impact depreciation calculations and reflect changes in asset composition or maintenance strategies.

Overall insights

The data points to a significant contraction in the company’s investment in property and equipment assets from 2019 to 2024. The simultaneous decrease in depreciation expenses and gross asset values reinforces this observation. The sharp depreciation in land value hints at possible strategic divestitures or asset impairments. Fluctuations in estimated useful life also suggest adjustments in asset management approaches over time, potentially in response to asset sales or operational shifts.

Accumulated Depreciation

The accumulated depreciation shows a general decreasing trend over the analyzed periods, starting at 1,235,800 thousand US dollars in early 2019 and declining to 851,200 thousand US dollars by early 2024. This decline suggests a consistent reduction in the total depreciated value of property, plant, and equipment, possibly reflecting asset disposals, write-downs, or changes in asset base.

Depreciation Expense

The annual depreciation expense follows a downward trajectory throughout the years, decreasing from 96,700 thousand US dollars in 2019 to 55,300 thousand US dollars in 2024. This declining expense indicates either a reduction in newly capitalized assets or changes in depreciation methods or asset lifespans. The consistent drop may also imply a shrinking depreciable asset base or slower asset acquisition rate.

Time Elapsed Since Purchase

The average age of the assets, measured in years, fluctuates slightly but remains generally stable, ranging between 13 and 17 years. The older average age observed in 2023 (17 years) compared to other years suggests periods with fewer recent asset purchases or increased retention of older assets. This aging asset base potentially contributes to the reduced depreciation expense, as older assets may be fully depreciated.

Property and equipment, net

The net value of property and equipment demonstrates a consistent declining trend over the examined periods. Starting at 321,300 thousand USD in early 2019, it steadily decreases to 94,900 thousand USD by early 2024, indicating a significant reduction in the company's fixed asset base.

Land

The value attributed to land shows a sharp decline from 18,700 thousand USD in early 2019 to a mere 600 thousand USD by early 2023, with an absence of data in early 2024. This decline suggests considerable disposals or revaluation of land assets during this time frame.

Depreciation expense

Depreciation expense follows a decreasing pattern consistent with the decline in net property and equipment. From 96,700 thousand USD in 2019, the expense reduces gradually to 55,300 thousand USD in 2024. This trend corresponds with the shrinking asset base, reflecting reduced depreciation charges.

Estimated remaining life

The estimated remaining useful life of property and equipment remains at 3 years through early 2021 but decreases to 2 years from 2022 onward. This reduction may indicate accelerated aging of assets or an adjustment in the company’s asset lifespan assumptions, possibly due to obsolescence or planned replacement.