Analysis on Game Stop
Throughout this assignment, I took a deep look into a popular video gaming company called Game Stop. This task challenged me to take a look at the ratios for over the course of three years for this company. In doing so, I’ve been able to analyze the information that I have found. Now that I have created this chart, I will take a look at the ratios and see how they compare to the industry benchmarks. Once I do that I will take a look at which ratios are strong and which ones need improvement. I will take it a little step further based off of the information that I receive to determine that if I was a stock investor whether or not I would buy the company’s stock. Finally, I would take a look at it from a bond investors stand point to see whether or not I would buy the company’s bond.
Game Stop vs. Industry …show more content…
Instantly with them being so low, I assumed that it was automatically bad. Through my research I found that is not the case. Some companies may have high current ratios but what it boils down to is whether or not the company’s working capital assets into cash to pay its current obligations (Liquidity Measurement Ratios 2007). In comparison to the other industry benchmarks like Microsoft, Nintendo and the Sony Corporation, Game Stop seems to be doing very well.
Ratios: Strong/Needs improvement With any organization the market always has room for improvement. According to the data, specifically with the profitability ratios many years they stood in the negative with -6.01 in 2013 but climbing to 9.43 in just 2015 ( GameStop Corp Class A. (n.d.). It seems to have struggled a little bit but according to Dan Caplinger and his reference in a 2013 print story, he believe even with that hard time at that moment they were still slowly climbing by 10%.
Stock and Bond investor: To buy or
Throughout this assignment, I took a deep look into a popular video gaming company called Game Stop. This task challenged me to take a look at the ratios for over the course of three years for this company. In doing so, I’ve been able to analyze the information that I have found. Now that I have created this chart, I will take a look at the ratios and see how they compare to the industry benchmarks. Once I do that I will take a look at which ratios are strong and which ones need improvement. I will take it a little step further based off of the information that I receive to determine that if I was a stock investor whether or not I would buy the company’s stock. Finally, I would take a look at it from a bond investors stand point to see whether or not I would buy the company’s bond.
Game Stop vs. Industry …show more content…
Instantly with them being so low, I assumed that it was automatically bad. Through my research I found that is not the case. Some companies may have high current ratios but what it boils down to is whether or not the company’s working capital assets into cash to pay its current obligations (Liquidity Measurement Ratios 2007). In comparison to the other industry benchmarks like Microsoft, Nintendo and the Sony Corporation, Game Stop seems to be doing very well.
Ratios: Strong/Needs improvement With any organization the market always has room for improvement. According to the data, specifically with the profitability ratios many years they stood in the negative with -6.01 in 2013 but climbing to 9.43 in just 2015 ( GameStop Corp Class A. (n.d.). It seems to have struggled a little bit but according to Dan Caplinger and his reference in a 2013 print story, he believe even with that hard time at that moment they were still slowly climbing by 10%.
Stock and Bond investor: To buy or