Stock Analysis on Net
Stock Analysis on Net

GameStop Corp. (NYSE:GME) 

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

GameStop Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 3, 2024 0.50% = 0.25% × 2.02
Jan 28, 2023 -23.68% = -10.06% × 2.35
Jan 29, 2022 -23.79% = -10.90% × 2.18
Jan 30, 2021 -49.30% = -8.71% × 5.66
Feb 1, 2020 -77.01% = -16.70% × 4.61
Feb 2, 2019 -50.37% = -16.64% × 3.03

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).

Three-Component Disaggregation of ROE

GameStop Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 3, 2024 0.50% = 0.13% × 1.95 × 2.02
Jan 28, 2023 -23.68% = -5.28% × 1.90 × 2.35
Jan 29, 2022 -23.79% = -6.34% × 1.72 × 2.18
Jan 30, 2021 -49.30% = -4.23% × 2.06 × 5.66
Feb 1, 2020 -77.01% = -7.28% × 2.29 × 4.61
Feb 2, 2019 -50.37% = -8.12% × 2.05 × 3.03

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).

Five-Component Disaggregation of ROE

GameStop Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 3, 2024 0.50% = 0.51 × 1.00 × 0.25% × 1.95 × 2.02
Jan 28, 2023 -23.68% = — × — × -5.10% × 1.90 × 2.35
Jan 29, 2022 -23.79% = — × — × -6.13% × 1.72 × 2.18
Jan 30, 2021 -49.30% = — × — × -4.65% × 2.06 × 5.66
Feb 1, 2020 -77.01% = — × — × -6.11% × 2.29 × 4.61
Feb 2, 2019 -50.37% = — × — × -6.93% × 2.05 × 3.03

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).

Two-Component Disaggregation of ROA

GameStop Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 3, 2024 0.25% = 0.13% × 1.95
Jan 28, 2023 -10.06% = -5.28% × 1.90
Jan 29, 2022 -10.90% = -6.34% × 1.72
Jan 30, 2021 -8.71% = -4.23% × 2.06
Feb 1, 2020 -16.70% = -7.28% × 2.29
Feb 2, 2019 -16.64% = -8.12% × 2.05

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).

Four-Component Disaggregation of ROA

GameStop Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 3, 2024 0.25% = 0.51 × 1.00 × 0.25% × 1.95
Jan 28, 2023 -10.06% = — × — × -5.10% × 1.90
Jan 29, 2022 -10.90% = — × — × -6.13% × 1.72
Jan 30, 2021 -8.71% = — × — × -4.65% × 2.06
Feb 1, 2020 -16.70% = — × — × -6.11% × 2.29
Feb 2, 2019 -16.64% = — × — × -6.93% × 2.05

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).

Disaggregation of Net Profit Margin

GameStop Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 3, 2024 0.13% = 0.51 × 1.00 × 0.25%
Jan 28, 2023 -5.28% = — × — × -5.10%
Jan 29, 2022 -6.34% = — × — × -6.13%
Jan 30, 2021 -4.23% = — × — × -4.65%
Feb 1, 2020 -7.28% = — × — × -6.11%
Feb 2, 2019 -8.12% = — × — × -6.93%

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).