Income Statement
Data:
Dollars
Percent
Dollars
Percent
Net sales
9,363.8
$
100.0%
9,296.0
$
100.0%
Cost of sales
6,445.5
$
68.8%
6,520.1
$
70.1%
Gross profit
2,918.3
$
31.2%
2,775.9
$
29.9%
Selling, general and administrative expenses
2,108.9
$
22.5%
2,001.0
$
21.5%
Depreciation and amortization
156.6
$
1.7%
154.4
$
1.7%
Asset impairments
4.6
$
0.0%
2.2
$
0.0%
Operating earnings
648.2
$
6.9%
618.3
$
6.7%
Interest expense, net
23.0
$
0.2%
10.0
$
0.1%
Earnings before income tax expense
625.2
$
6.7%
608.3
$
6.5%
Income tax expense
222.4
$
2.4%
215.2
$
2.3%
Net income
402.8
$
4.3%
393.1
$
4.2%
Dollars
Percent
Dollars
Percent
Current assets:
Cash and cash equivalents
450.4
$
10.4%
610.1
$
14.37%
Receivables, net
176.5
$
4.1%
113.5
$
2.67%
Merchandise inventories, net
1,163.0
$
26.8%
1,144.8
$
26.96%
Deferred income taxes - current
65.6
$
1.54%
Prepaid expenses and other current assets
148.9
$
3.4%
128.5
$
3.03%
Total Current Assets
1,938.8
$
44.7%
2,062.5
$
48.57%
Property and equipment:
Land
17.3
$
0.4%
18.3
$
0.43%
Buildings and leasehold improvements
668.2
$
15.4%
609.2
$
14.35%
Fixtures and equipment
874.6
$
20.2%
888.2
$
20.92%
Total property and equipment
1,560.1
$
36.0%
1,515.7
$
35.69%
Less accumulated depreciation
1,075.6
$
24.8%
1,061.5
$
25.00%
Percentage of Net Sales (In Millions)
(In Millions, except par value per share)
Balance Sheet
52 Weeks Ended
January 30, 2016
52 Weeks Ended
January 31, 2015
ASSETS
52 Weeks Ended 52 Weeks Ended
January 30, 2016 January 31, 2015
Individual Learning Project
ACCT 212-B02 LUO
Income Statement
Vertical Analysis
Net property and equipment
484.5
$
11.2%
454.2
$
10.70%
Deferred income taxes - noncurrent
39.0
$
0.9%
24.3
$
0.57%
Goodwill
1,476.7
$
34.1%
1,390.4
$
32.74%
Other intangible assets, net
330.4
$
7.6%
237.8
$
5.60%
Other noncurrent assets
65.5
$
1.5%
77.1
$
1.82%
Total noncurrent assets
2,396.1
$
55.3%
2,183.8
$
51.43%
Total assets
4,334.9
$
100.0%
4,246.3
$
100.00%
Current liabilities:
Accounts payable
631.9
$
14.6%
815.6
$
19.2%
Accrued liabilities
1,041.0
$
24.0%
803.6
$
18.9%
Income taxes payable
121.1
$
2.8%
15.4
$
0.4%
Notes payable
0.4
$
0.0%
5.1
$
0.1%
Total current liabilities
1,794.4
$
41.4%
1,639.7
$
38.6%
Deferred income taxes
29.6
$
0.7%
95.9
$
2.3%
Long-term debt
350.0
$
8.1%
350.6
$
8.3%
Other long-term liabilities
79.9
$
1.8%
92.4
$
2.2%
Total long-term liabilities
459.5
$
10.6%
538.9
$
12.7%
Total liabilities
2,253.9
$
52.0%
2,178.6
$
51.3%
Stockholders' equity:
Class A common stock--$.001 par
value; authorized 300.0 shares; 103.3
and 107.7 shares issued, 103.3 and 107.7
shares outstanding, respectively 0.1$ 0.1$
Additional paid-in-capital
Accumulated other comprehensive loss
(88.8)
$
-2.0%
(25.4)
$
-0.6%
Retained earnings
2,169.7
$
50.1%
2,093.0
$
49.3%
Total stockholders' equity
2,081.0
$
48.0%
2,067.7
$
48.7%
Total liabilities and stockholders' equity
4,334.9
$
100.0%
4,246.3
$
100.0%
LIABILITIES AND STOCKHOLDERS' EQUITY
Income Statement Data:
1/30/2016
1/31/2015
Amount
Net Sales
9,363,800,000
$
9,296,000,000
$
67,800,000
$
Cost of Sales
6,445,500,000
$
6,520,100,000
$
(74,600,000)
$
Gross Profit
2,918,300,000
$
2,775,900,000
$
142,400,000
$
Selling, general and administrative expenses
2,108,900,000
$
2,001,000,000
$
107,900,000
$
Depreciation and amortization
156,600,000
$
154,400,000
$
2,200,000
$
Asset impairments
4,600,000
$
2,200,000
$
2,400,000
$
Operating earnings
648,200,000
$
618,300,000
$
29,900,000
$
Interest expense, net
23,000,000
$
10,000,000
$
13,000,000
$
Earnings before income tax expense
625,200,000
$
608,300,000
$
16,900,000
$
Taxes
222,400,000
$
215,200,000
$
7,200,000
$
Net Income
402,800,000
$
393,100,000
$
9,700,000
$
1/30/2016
1/31/2015
Amount
Current assets:
Cash and cash equivalents
450.4
$
610.1
$
(159.70)
$
Receivables, net
176.5
$
113.5
$
63.00
$
Merchandise inventories, net
1,163.0
$
1,144.8
$
18.20
$
Deferred income taxes - current
65.6
$
(65.60)
$
Prepaid expenses and other current assets
148.9
$
128.5
$
20.40
$
Total Current Assets
1,938.8
$
2,062.5
$
(123.70)
$
Property and equipment:
Land
17.3
$
18.3
$
(1.00)
$
Buildings and leasehold improvements
668.2
$
609.2
$
59.00
$
Fixtures and equipment
874.6
$
888.2
$
(13.60)
$
Total property and equipment
1,560.1
$
1,515.7
$
44.40
$
Less accumulated depreciation
1,075.6
$
1,061.5
$
14.10
$
ASSETS
(In Millions, except par value per share)
For 52 Weeks Ended
Increase or Decrease
Balance Sheet
52 Weeks Ended
Increase or Decrease
Individual Learning Project
ACCT 212-B02 LUO
Horizontal Analysis
Income Statement
Net property and equipment
484.5
$
454.2
$
30.30
$
Deferred income taxes - noncurrent
39.0
$
24.3
$
14.70
$
Goodwill
1,476.7
$
1,390.4
$
86.30
$
Other intangible assets, net
330.4
$
237.8
$
92.60
$
Other noncurrent assets
65.5
$
77.1
$
(11.60)
$
Total noncurrent assets
2,396.1
$
2,183.8
$
212.30
$
Total assets
4,334.9
$
4,246.3
$
88.60
$
Current liabilities:
Accounts payable
631.9
$
815.6
$
(183.70)
$
Accrued liabilities
1,041.0
$
803.6
$
237.40
$
Income taxes payable
121.1
$
15.4
$
105.70
$
Notes payable
0.4
$
5.1
$
(4.70)
$
Total current liabilities
1,794.4
$
1,639.7
$
154.70
$
Deferred income taxes
29.6
$
95.9
$
(66.30)
$
Long-term debt
350.0
$
350.6
$
(0.60)
$
Other long-term liabilities
79.9
$
92.4
$
(12.50)
$
Total long-term liabilities
459.5
$
538.9
$
(79.40)
$
Total liabilities
2,253.9
$
2,178.6
$
75.30
$
Stockholders' equity:
Class A common stock--$.001 par value;
authorized 300.0 shares; 103.3 and 107.7
shares issued, 103.3 and 107.7 shares
outstanding, respectively 0.1$ 0.1$
Additional paid-in-capital
Accumulated other comprehensive loss
(88.8)
$
(25.4)
$
(63.40)
$
Retained earnings
2,169.7
$
2,093.0
$
76.70
$
Total stockholders' equity
2,081.0
$
2,067.7
$
13.30
$
Total liabilities and stockholders' equity
4,334.9
$
4,246.3
$
88.60
$
LIABILITIES AND STOCKHOLDERS' EQUITY
Percent
0.7%
-1.1%
5.1%
5.4%
1.4%
109.1%
4.8%
130.0%
2.8%
3.3%
2.5%
Percent
-26.2%
55.5%
1.6%
-100.0%
15.9%
-6.0%
-5.5%
9.7%
-1.5%
2.9%
1.3%
Increase or Decrease
Increase or Decrease
6.7%
60.5%
6.2%
38.9%
-15.0%
9.7%
2.1%
-22.5%
29.5%
686.4%
-92.2%
9.4%
-69.1%
-0.2%
-13.5%
-14.7%
3.5%
249.6%
3.7%
0.6%
2.1%
Ratio
Formula
Amounts
Current assets
1,938,800,000
$
Current liabilities
1,794,400,000
$
Cash+Short-term Investments+Current receivables
626,900,000
$
Current Liabilities
1,794,400,000
$
Net Sales
9,363,800,000
$
Average accounts receivable, net
145,000,000
$
Cost of goods sold
6,445,500,000
$
Average inventory
1,153,900,000
$
Accounts receivables, net
176,500,000
$
Net sales
9,363,800,000
$
Ending inventory
1,144,800,000
$
Cost of good sold
6,445,500,000
$
Net sales
9,363,800,000
$
Average total assets
4,290,600,000
$
Total liabilities
2,253,900,000
$
Total assets
4,334,900,000
$
Total equity
2,081,000,000
$
Total assets
4,334,900,000
$
Solvency
Debt ratio
For 52 Weeks ending 1/30/2016
Equity ratio
Total asset turnover
Individual Learning Project
ACCT 212-B02 LUO
Ratio Analysis
Current Ratio
Liquidity and Efficiency
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Days' sales uncollected
Days' sales in Inventory
X
X
Total liabilities
2,253,900,000
$
Total equity
2,081,000,000
$
Income before interest expense and income taxes
647,800,000
$
Interest expense
23,400,000
$
Net income
402,800,000
$
Net sales
9,363,800,000
$
Net sales - Cost of goods sold
2,918,300,000
$
Net sales
9,363,800,000
$
Net income
402,800,000
$
Average total assets
4,290,600,000
$
Return on common
Net income - Preferred dividends
402,800,000
$
stockholders' equity
Average common stockholders' equity
2,074,350,000
$
Shareholders' equity applicable to common shares
2,081,000,000
$
Number of common shares outstanding
103,300,000.00
Net income - Preferred dividends
402,800,000
$
Weighted-average common shares outstanding
106,000,000
$
Market price per common share
40.22
$
Earnings per share
3.80
$
Annual cash dividends per share
1.44
Market price per share
40.22
Price-earnings ratio
Dividend yield
Profit margin ratio
Gross margin ratio
Return on total assets
Book value per common share
Basic earnings per share
Market Prospects
Debt-to-equity ratio
Times interest earned
Profitablility
Ratio
Conclusion
I believe Gamestop is fairly liquid. They appear to have enough liquid
assets to sustain them for quite some time. Gamestop is using its
assets efficiently.
Gamestop has about an equal debt-to-equity ratio so I see no problems
6.88
64.83
2.18
0.52
0.48
Solvency
For 52 Weeks ending 1/30/2016
1.08
0.35
64.58
5.59
Individual Learning Project
ACCT 212-B02 LUO
Ratio Analysis
Liquidity and Efficiency
X
X 365
$20.15
$3.80
10.58
3.58%
Gamestop has about an equal debt-to-equity ratio so I see no problems
here.
Gamestop is profitable. With a decent profit margin ratio and gross
margin ratio.
1.08
19.42%
Market Prospects
4.30%
31.17%
9.39%
Profitablility
27.68
