TUI UNIVERSITY SLP 1
Running Head: Discuss the Financial Information of the Publicly Traded Company Game Stop Over the Past Several Years.
TUI UNIVERSITY
Module 1 SLP
FIN501: Strategic Corporate Finance
Dr. John Halstead
July 21, 2014
This particular project involves the financial analysis a publicly traded company. I chose to focus on Game Stop, an American video game entertainment software retailer, based out of Grapevine, Texas. Game Stop (GME) is a corporation which is publicly traded on the New York Stock Exchange. “GameStop (GME) is a global specialty retailer of video game hardware/software/accessories and mobile phone re-commerce (unlocking etc.). The company derives a substantial portion of its gross margin (41%) from the purchase and resale of used games, typically from customers, but increasingly from liquidation closeouts and other retailers clearing inventory. The value proposition of GME starts (and ends) with the premise that gamers seek salvage value from their games, particularly those shiny new $60 ones. Salvage value serves as credit toward future hardware/software/accessory purchases without the headache/fees and two-step process of selling for cash into Amazon/eBay/Craigslist before outlaying the next purchase. The GameStop trade-in model is relatively seamless and allows the company to maintain a negative working capital balance that outpaces any big-box specialty retailer” (Morrison, 2014).
As I worked throughout this assignment I referenced three financial reports in order to gain a better understanding of Game Stop Corporation’s financial position: 2012 Game Stop Annual Review, Yahoo’s Game Stop Income Statement, and Y Charts GME Statement of Cash Flows.
I have two sons and they are avid gamer and Game Stop Rewards Premium member, I hope to gain a better financial understanding of a corporation that receives an abundance of dollars of my income each year. Game Stop Competitive Position In terms of
TUI UNIVERSITY
Module 1 SLP
FIN501: Strategic Corporate Finance
Dr. John Halstead
July 21, 2014
This particular project involves the financial analysis a publicly traded company. I chose to focus on Game Stop, an American video game entertainment software retailer, based out of Grapevine, Texas. Game Stop (GME) is a corporation which is publicly traded on the New York Stock Exchange. “GameStop (GME) is a global specialty retailer of video game hardware/software/accessories and mobile phone re-commerce (unlocking etc.). The company derives a substantial portion of its gross margin (41%) from the purchase and resale of used games, typically from customers, but increasingly from liquidation closeouts and other retailers clearing inventory. The value proposition of GME starts (and ends) with the premise that gamers seek salvage value from their games, particularly those shiny new $60 ones. Salvage value serves as credit toward future hardware/software/accessory purchases without the headache/fees and two-step process of selling for cash into Amazon/eBay/Craigslist before outlaying the next purchase. The GameStop trade-in model is relatively seamless and allows the company to maintain a negative working capital balance that outpaces any big-box specialty retailer” (Morrison, 2014).
As I worked throughout this assignment I referenced three financial reports in order to gain a better understanding of Game Stop Corporation’s financial position: 2012 Game Stop Annual Review, Yahoo’s Game Stop Income Statement, and Y Charts GME Statement of Cash Flows.
I have two sons and they are avid gamer and Game Stop Rewards Premium member, I hope to gain a better financial understanding of a corporation that receives an abundance of dollars of my income each year. Game Stop Competitive Position In terms of