GameStop Corp. (NYSE:GME)

Debt to Equity

The debt to equity ratio showed a significant rise from 0.36 to 1.46 between May 2019 and October 2020, indicating increasing reliance on debt relative to shareholders' equity during this period. A notable decline followed, reaching a low plateau around 0.02-0.03 from May 2021 onward, reflecting a substantial reduction in debt relative to equity.

Debt to Equity (Including Operating Lease Liability)

This ratio increased markedly from 0.98 in May 2019 to a peak of 3.48 in October 2020, underscoring heightened overall leverage when operating leases are considered. Subsequently, the ratio fell sharply to around 0.38-0.81 through early 2021 and then stabilized in the 0.45 to 0.51 range up to February 2024, demonstrating more moderate use of debt plus lease obligations in capital structure.

Debt to Capital

The debt to capital ratio initially increased from 0.27 in May 2019 to 0.59 in October 2020, indicating a rising proportion of debt in the company's capital mix. From early 2021 onwards, it dropped steeply to approximately 0.02-0.05 and remained very low through the most recent quarter, signifying deleveraging efforts and a stronger equity base.

Debt to Capital (Including Operating Lease Liability)

Including operating lease liabilities, the ratio grew from 0.50 in May 2019 to a plateau near 0.78 in late 2020, evidencing increased total leverage. Thereafter, it gradually decreased to around 0.31 by February 2024, suggesting a gradual reduction in overall obligations relative to capital, yet maintaining a moderate leverage level when leases are accounted for.

Debt to Assets

This ratio displayed a modest upward trend from 0.13 to around 0.22 between 2019 and 2020, before dropping to a very low 0.01-0.02 range from mid-2021 onwards. This shift points to a decreased proportion of debt financing assets on the balance sheet in recent periods.

Debt to Assets (Including Operating Lease Liability)

When including operating leases, the ratio rose from 0.35 in May 2019 to 0.52 in May 2020, and then gradually declined to near 0.2 to 0.23 by early 2024. Despite fluctuations, including lease liabilities shows consistently higher asset leverage compared to excluding these obligations.

Financial Leverage

The financial leverage ratio rose from 2.81 in May 2019 to a peak of 7.83 in October 2020, indicating increased total asset base relative to equity most likely driven by financing decisions. From 2021 onwards, the ratio showed a downward trend with some volatility, settling between approximately 1.98 and 2.67 by the beginning of 2024, suggesting partial deleveraging and a more conservative balance sheet structure in recent times.

The analysis of the financial data for the company reveals notable trends in its leverage and capital structure over the examined periods.

Total Debt

The total debt exhibited fluctuations, starting at a high level of approximately $469 million in early May 2019, with a slight decline observed throughout 2019. Noteworthy is the significant increase to over $552 million in May 2020, indicating a rise in borrowing during this period. Following this peak, the debt level steadily declined, reaching approximately $25.7 million by May 2024. This marked reduction represents a substantial deleveraging effort over the last few years.

Stockholders’ Equity

Stockholders' equity initially decreased markedly from approximately $1.29 billion in May 2019 to around $332 million by October 2020. However, beginning in early 2021, equity capital began to recover robustly, surging to about $1.85 billion by May 2021, followed by some fluctuations but generally maintaining a level above $1.2 billion through May 2024. This recovery and stabilization suggest efforts to reinforce the equity base, potentially through retained earnings or capital infusions.

Debt to Equity Ratio

The debt to equity ratio presents a significant shift over the time frame. Initially moderate at 0.36, the ratio increased steadily to a peak of 1.46 by the end of October 2020, indicating increased financial leverage and risk. Subsequent data show a drastic decline in leverage, with the ratio falling to negligible levels (around 0.02) by early 2024. This reflects a strategic reduction in debt relative to equity, pointing to improved financial stability and lower risk exposure.

Overall, the data indicates that after a period of increased borrowing and reduced equity, the company undertook a substantial deleveraging and capitalization process post-2020. The marked decrease in total debt combined with a significant increase and stabilization in stockholders' equity has led to an improved capital structure characterized by very low financial leverage as of the most recent periods. This transformation suggests a shift towards a more conservative financial policy and enhanced financial health.

Total Debt (including operating lease liability)

The total debt exhibited a general downward trend over the analyzed period. Starting at approximately $1.27 billion in May 2019, it decreased moderately with some fluctuations, reaching a low of around $574.5 million by October 2022. Following this low point, the debt showed some increases, peaking near $650.5 million in April 2023, before gently declining again to about $588.7 million by May 2024. Overall, the reduction in debt from the initial to the final period is significant, indicating improved leverage management or repayment activity.

Stockholders’ Equity

Stockholders’ equity demonstrated notable variability throughout the timeline. Initially, it dropped sharply from approximately $1.29 billion in May 2019 to about $332 million by October 2020, suggesting potential losses, share repurchases, or other equity-reducing events during that interval. Post-October 2020, equity rebounded significantly, peaking at nearly $1.85 billion in July 2021. Afterward, it gradually decreased again, settling around $1.31 billion by May 2024. This pattern indicates a phase of recovery and rebuilding of equity following the earlier decline, maintaining a relatively stable equity base in the latter periods.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio experienced considerable fluctuations aligned with the movements in debt and equity. Initially below 1.0 at 0.98, the ratio increased sharply, reaching a peak of 3.48 in October 2020, reflecting heightened leverage driven by rising debt and falling equity. Following this peak, the ratio decreased substantially, falling under 1.0 by January 2021 and maintaining levels between 0.38 and 0.51 thereafter. The ratio stabilized around 0.45 in the most recent periods, indicating a much more balanced capital structure with relatively low financial risk compared to earlier in the timeline.

The financial data indicates a significant shift in the company’s capital structure over the analyzed periods. Initially, total debt experienced fluctuations, rising from approximately 469 million US dollars to a peak exceeding 552 million, before a consistent decline to 25.7 million by the most recent quarter. This decreasing trend in total debt suggests a strategic reduction in leverage over time.

Conversely, total capital exhibited some volatility with an initial decrease from 1.76 billion to under 1 billion US dollars, followed by periods of recovery and growth, reaching a high near 1.9 billion in mid-2021. Afterward, total capital stabilized slightly above 1.3 billion, indicating a relatively stable capital base in recent quarters.

Total Debt

Starting relatively high, total debt peaked in mid-2020 but steadily decreased thereafter, reaching a consistent low level in the last several quarters.

Total Capital

Total capital showed a downward trend in the early periods, then rebounded sharply in 2021, and maintained a moderate level with minor fluctuations subsequently.

Debt to Capital Ratio

The debt to capital ratio mirrored the changes in debt levels, initially increasing and peaking near 0.59, indicating higher leverage. From early 2021 onward, the ratio dramatically dropped to about 0.03 or lower, suggesting a very low reliance on debt financing in the capital structure.

Overall, the company has substantially reduced its financial leverage since early 2021, improving its debt to capital ratio to historically low levels. This shift may reflect a strategic preference for equity or other funding forms over debt, enhancing financial stability and potentially reducing financial risk.

Debt Levels

The total debt, inclusive of operating lease liabilities, exhibited a fluctuating trend over the observed periods. Initially, there was a modest decline from approximately 1,271,500 thousand USD in May 2019 to 1,044,800 thousand USD by January 2021. This was followed by a significant reduction to 617,000 thousand USD in April 2022. From this low point, the debt levels showed a mild increase and stabilization around 600,000 to 650,000 thousand USD through the following quarters up to May 2024.

Capital Structure

Total capital including operating lease liabilities showed a notable contraction from 2,563,200 thousand USD in May 2019 to a low of 1,487,300 thousand USD in October 2020. Afterward, there was a substantial rebound that peaked at 2,553,000 thousand USD in May 2021, followed by a gradual decrease to 1,896,000 thousand USD by May 2024. This pattern indicates volatility in the company's capital base with phases of both contraction and expansion over the timeframe.

Debt to Capital Ratio

The debt-to-capital ratio began at 0.50 in May 2019, increased steadily reaching a peak of 0.78 around October 2020, signaling a relatively high leverage position during that period. Subsequently, the ratio decreased sharply to about 0.27 in July 2021, reflecting a much lower relative debt burden. From mid-2021 onwards, the ratio stabilized in the range of 0.30 to 0.34, indicating a return to moderate leverage levels and relative capital structure stability.

Overall Insights

The financial data reveals a period of elevated leverage leading up to late 2020, which coincides with both rising debt levels and contracting capital, suggesting increased reliance on debt financing. Following this, the company engaged in deleveraging actions that substantially reduced total debt and improved the debt-to-capital ratio. The capital base showed an ability to recover after an initial significant reduction. In recent quarters, both debt and capital levels have stabilized, with the debt-to-capital ratio maintaining a consistent level around one-third, pointing to a more balanced and sustainable capital structure.

Total Debt

The total debt exhibited a generally declining trend from May 2019 through May 2024. Initially, total debt was relatively high, peaking around the mid-2019 to early 2020 period near 552,200 thousand US dollars. After that peak, debt consistently decreased, reaching a low of approximately 25,700 thousand US dollars by May 2024. This marked reduction indicates a steady effort to reduce liabilities over the period.

Total Assets

The total assets showed considerable fluctuations across the reported quarters. Beginning at roughly 3,633,300 thousand US dollars in May 2019, assets declined through mid-2020 reaching a minimum near 2,379,500 thousand US dollars in the third quarter of 2022. There were intermittent rebounds, notably in late 2021 and early 2023, where totals increased to over 3,300,000 thousand US dollars, before falling again by May 2024 to approximately 2,587,100 thousand US dollars. Overall, total assets experienced a downward trend with periodic recoveries.

Debt to Assets Ratio

The debt to assets ratio remained relatively stable in the earlier periods, fluctuating modestly between 0.13 and 0.22 from May 2019 to early 2020. Starting in mid-2020, there was a significant and sustained reduction in this ratio, falling sharply to near 0.01 and remaining consistently low through to May 2024. This sharp ratio decline aligns with the substantial decrease in total debt and indicates a strengthened balance sheet with lower leverage relative to asset base.

Overall Insight

The data reflects a firm-wide deleveraging process over the analyzed timeframe, demonstrated by the sharp reduction in total debt and the debt to assets ratio. Despite fluctuations, total assets showed a general decreasing pattern, suggesting possible asset disposals or valuation changes. The strong decline in leverage points to an improved financial stability and lower credit risk, which may enhance the company’s flexibility for future investments or operational needs.

Total Debt (Including Operating Lease Liability)

The total debt exhibited a general declining trend from May 4, 2019, through May 4, 2024. Beginning at approximately 1.27 billion USD, debt levels fluctuated moderately until early 2020, after which there was a pronounced decrease trend with some intermittent increases. Notably, between January 30, 2021, and October 29, 2022, debt decreased significantly from about 1.05 billion USD to roughly 575 million USD. Thereafter, debt figures showed some variability but largely remained below 650 million USD, ending at approximately 589 million USD in May 2024.

Total Assets

Total assets experienced considerable volatility over the observed period. Starting at around 3.63 billion USD in May 2019, assets decreased to roughly 2.46 billion USD in May 2020, reflecting a downward trend in the first year. A recovery phase followed, with assets rising sharply to a peak of approximately 3.76 billion USD by October 2021. Subsequently, there was a marked decline until reaching near 2.59 billion USD by May 2024. These fluctuations suggest significant asset base adjustments over the periods, including expansions and contractions.

Debt to Assets Ratio

The debt-to-assets ratio displayed marked variation across the timeline. Initially, this ratio was close to 0.35 in May 2019, increasing to a peak of 0.52 by May 2020, indicating a growing leverage in relation to asset size during this interval. Following this peak, a steady decrease ensued, with the ratio dropping to near 0.17 by October 29, 2022, illustrating improved balance sheet leverage and reduced relative debt burden. From late 2022 through May 2024, the ratio shifted modestly upwards, fluctuating between 0.20 and 0.23, signaling a stabilization of leverage at a relatively lower level compared to the early periods.

Overall Insights

The data reflects strategic deleveraging, particularly visible from mid-2020 onward, as total debt decreased significantly while assets displayed a cyclical pattern of recovery and decline. The reduction in the debt-to-assets ratio post-2020 indicates enhanced financial stability or a shift towards less reliance on debt financing relative to asset base. The volatility in asset values may correspond to operational or market conditions impacting asset holdings. The moderate increase in leverage ratio towards the end of the period suggests some renewed debt utilization, though remaining at manageable levels compared to earlier high points.

Total Assets

The total assets exhibit a generally declining trend from May 2019 through August 2020, decreasing from approximately 3.63 billion USD to 2.38 billion USD. A moderate recovery is observed starting in October 2020, peaking in October 2021 around 3.76 billion USD. Subsequently, total assets again show a downward trajectory with fluctuations, declining to roughly 2.59 billion USD by May 2024. This pattern indicates periods of asset contraction followed by intermittent recoveries, ultimately trending downward in the most recent periods.

Stockholders’ Equity

Stockholders’ equity displays significant volatility. Initially, it declines sharply from 1.29 billion USD in May 2019 to approximately 352 million USD by August 2020, reflecting a strong reduction in net assets. From August 2020 to May 2021, there is a robust increase culminating in a peak of around 1.85 billion USD. Following this peak, equity trends downward with moderate fluctuations until January 2023, stabilizing in the range of approximately 1.26 to 1.34 billion USD through May 2024. This fluctuation suggests capital restructuring or changes in retained earnings, impacting the company's net worth.

Financial Leverage

The financial leverage ratio exhibits marked variation over the analyzed periods. Starting at 2.81 in May 2019, it rises sharply to reach a series high of 7.83 in October 2020, indicating increased reliance on debt relative to equity. Post this peak, leverage decreases sharply to 1.91 by May 2021, implying deleveraging or equity growth. From May 2021 onward, leverage ratios stabilize mostly between approximately 2.0 and 2.7 with minor fluctuations, suggesting a more balanced capital structure in recent quarters with moderate financial risk exposure.

Summary

Overall, the data reveal a company experiencing significant changes in asset size and equity level, with a notable peak and subsequent stabilization occurring around mid-2021. The sharp changes in financial leverage indicate phases of increased borrowing followed by efforts to reduce debt exposure. The recent stabilization of leverage along with fluctuating but overall declining total assets and relatively stable equity may reflect strategic shifts focusing on risk management and capital efficiency.