Does GameStop have debt?
GameStop does have debt, with a total debt of approximately $651 million, but its debt-to-equity ratio is relatively low at 0.5, indicating that the company has less debt than equity, which suggests low financial risks and great financial flexibility. The company’s debt levels and financial health are being closely monitored by investors and analysts, particularly after the company’s stock price volatility and its ability to turn a quarterly profit after receiving support from r/WallStreetBets.
GameStop’s Financial Health
Overview of GameStop’s Debt
To answer the question of whether GameStop has debt, it is essential to examine the company’s financial statements and reports. According to the available data, GameStop has a total shareholder equity of $1.3 billion and a total debt of $34.6 million, which translates to a debt-to-equity ratio of 2.7%. However, when considering other loan obligations, the company’s total debt increases to approximately $651 million.
FAQs about GameStop’s Debt and Financial Health
- What is GameStop’s current debt-to-equity ratio?: GameStop’s debt-to-equity ratio is approximately 0.5, indicating that the company has less debt than equity.
- How much debt does GameStop have?: GameStop has a total debt of approximately $651 million.
- Is GameStop in financial trouble?: GameStop was able to stave off bankruptcy thanks to r/WallStreetBets’ support, and the company has since turned its first quarterly profit since 2021.
- Is GameStop out of debt?: No, GameStop still has debt, but its debt-to-equity ratio suggests low financial risks and great financial flexibility.
- Who owns the most GameStop shares?: Ryan Cohen’s firm RC Ventures has a 12.09% stake in GameStop, making him the largest insider shareholder.
- What is GameStop’s current market capitalization?: GameStop has a market cap or net worth of $4.23 billion as of November 3, 2023.
- How does GameStop make money?: GameStop’s main profit generator is in used games, and the company also benefits from the sale of new gaming consoles.
- Who is the CEO of GameStop?: Ryan Cohen is the current CEO and President of GameStop.
- Can GameStop happen again?: The exact events that happened during the GameStop phenomenon are unlikely to be replicated, according to most experts.
- Is GameStop doing well financially?: GameStop’s financial health is being closely monitored, but the company has built up a strong cash position over the past few years.
- What is the GameStop problem?: The GameStop episode has been associated with a similar increase in volatility in the broader market.
- Who lost money on GameStop?: Melvin Capital lost billions from shorting GameStop, and many hedge funds now monitor financial discussions on Reddit and other social media platforms.
- Who are the main investors in GameStop?: Institutional investors, including Vanguard, BlackRock, and State Street Corp., hold approximately 27.6% of GameStop’s outstanding shares.
- Does Ryan Cohen own GameStop?: Ryan Cohen’s firm RC Ventures has a 12.09% stake in GameStop, making him the largest insider shareholder.
- Who founded GameStop?: GameStop traces its roots to Babbage’s, a Dallas, Texas-based software retailer founded in 1984 by former Harvard Business School classmates James McCurry and Gary M. Kusin.