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Like Netflix, GameStop is a company that sells entertainment. By 2019, GameStop had become the largest retailer of new and used video games, hardware, entertainment

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Like Netflix, GameStop is a company that sells entertainment. By 2019, GameStop had become the largest retailer of new and used video games, hardware, entertainment software, and accessories with roughly 4,000 GameStop, EB Games, and Micromania branded stores in the US and 2,000-plus stores in Europe, Australia, and Canada. Their stores and e-commerce websites stocked more than 6,000 video game related items, with more than half of sales coming from new video game hardware and software. GameStop was also selling downloadable add-on content from publishers and operating 1,300 smartphone retail locations under the AT&T, Cricket Wireless, Simply Mac, and Spring Mobile banners (note, Spring Mobile was slated for divestiture), and they published the video game magazine Game Informer. (Dun & Bradstreet, Inc., 2019)

If Netflix is "new school," then GameStop is "old school." At the beginning of 2019, Netflix is a company in the growth phase and GameStop is a mature company in the harvest phase. Whereas, Blockbuster Video provides an example of a company that's in the "extinction phase." In 2004 there were over 9,000 Blockbuster Video stores; and in July of 2018, the city of Bend, Oregon gained a new tourist attraction?they became the home of the last remaining Blockbuster Video Store.

Presented below are SWOT analyses for Netflix and GameStop prepared as of March 20, 2019 and sourced from D&B Hoovers. SWOT is a familiar acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are intended to describe conditions internal to the organization. Opportunities and Threats are terms used to describe the external environment within which the organization operates

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GameStop Corp. As of Consolidated Balance Sheets [in millions] Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 Current assets: Cash and cash equivalents $ 864.4 $ 669.4 $ 450.4 Receivables, net $ 182.7 $ 220.9 $ 176.5 Merchandise inventories, net $ 1,366.7 $ 1,121.5 $ 1,163.0 Prepaid expenses and other current assets $ 124.9 $ 128.9 $ 147.6 Total current assets $ 2,538.7 $ 2,140.7 $ 1,937.5 Property and equipment: Land $ 19.9 $ 18.6 $ 17.3 Buildings and leasehold improvements $ 769.8 $ 724.5 $ 668.2 Fixtures and equipment $ 973.5 $ 931.4 $ 874.6 Total property and equipment $ 1,763.2 $ 1,674.5 $ 1,560.1 Less accumulated depreciation $ 1,330.0 $ 1,203.5 $ 1,075.6 Property and equipment, net Z'EEV S $ 471.0 $ 484.5 Non-current assets: Deferred Tax Assets, Net, Noncurrent $ 158.2 $ 59.0 $ 39.0 Goodwill $ 1,667.3 $ 1,725.2 $ 1,476.7 Other intangible assets, net $ 169.5 $ 507.2 $ 330.4 Other non-current assets $ 74.7 $ 72.8 $ 62.2 Total non-current assets $ 2,069.7 $ 2,364.2 $ 1,908.3 Total assets $ 5,041.6 $ 4,975.9 Current liabilities: Accounts payable $ 902.0 $ 616.6 $ 631.9 Accrued liabilities $ 976.1 $ 1,090.9 $ 1,041.4 Income taxes payable $ 37.5 $54.0 $ 121.1 Total current liabilities $ 1,915.6 $ 1,761.5 $ 1,794.4 Non-current liabilities: Deferred income taxes $5.0 $ 23.0 $ 29.6 Other long-term liabilities $ 88.6 $ 122.3 $ 345.4 Other long-term liabilities $ 817.9 $ 815.0 $ 79.9 Total non-current liabilities $ 911.5 $ 960.3 $ 454.9 Total liabilities $ 2,827.1 $ 2,721.8 $ 2,249.3 Owners equity: Class A common stock $0.1 $0.1 $0.1 Additional paid-in capital $ 22.1 $0.0 $0.0 Accumulated other comprehensive income (loss] $ 12.2 $ (47.3] $ (88.8 Retained earnings $ 2,180.1 $ 2,301.3 $ 2,169.7 Total owners equity $ 2,214.5 $ 2,254.1 $ 2,081.0 Total liabilities and stockholders' equity $ 5,041.6 $ 4.975.9 E'OFE'SGameStop Corp. 12 Months Ended Consolidated Statements Of Cash Flows (in millions) Feb. 03, 2018 | Jan. 28, 2017 Jan. 30, 2016 Net cash flows provided by operating activities 434.9 537.1 656.8 Cash flows from investing activities: Purchase of property and equipment (113.4) (142.7) (173.2) Acquisitions, net of cash acquired of $0.0, $0.1, and $13.9, respectively (8.5) (441.2) (267.5) Proceeds from Divestiture of Businesses 55 0 0 Other 3.2 5.9 3.9 Net cash flows used in investing activities (63.7) (578) 444.6) Cash flows from financing activities: Repayment of acquisition-related debt (21.8) (0.4) (2.2) Repurchase of common shares (22) (63.1) (194.3) Dividends paid (155.2) (155.5) (154.1) Proceeds from Issuance of Long-term Debt 0 475 0 Borrowings from the revolver 373 545 463 Repayments of revolver borrowings (373) (545) (463) Payments of Financing Costs 0 (8.1) Payments Related to Tax Withholding for Share-based Compensation (3.5) (8.4) Issuance of common stock, net of share repurchases for withholding taxes 0 Excess Tax Benefit from Share-based Compensation, Financing Activities (0.8) 4.4 Net cash flows (used in) provided by financing activities (202.5) 238.7 (346.2) Exchange rate effect on cash and cash equivalents 26.3 21.2 (25.7) Increase (decrease) in cash and cash equivalents 195.0 219.0 159.7) Cash and cash equivalents at beginning of period 669.4 450.4 610.1 Cash and cash equivalents at end of period 864.4 669.4 450.4GameStop Corp. 12 Months Ended Consolidated Income Statement (in millions) Feb. 03, 2018 Jan. 28, 2017 Jan. 30, 2016 Net sales $ 9,224.6 $ 8,607.9 $ 9,363.8 Cost of sales $ 6,184.5 $ 5,598.6 $ 6,445.5 Gross Margin $ 3,040.1 $ 3,009.3 $ 2,918.3 Expenses: Selling, general and administrative expenses $ 2,363.0 $ 2,252.6 $ 2,108.9 Depreciation and amortization $ 150.7 $ 165.2 $ 156.6 Goodwill impairments $ 32.8 $0.0 $ 0.0 Asset impairments $ 358.0 $ 33.8 $ 4.6 Total Expenses $ 2,904.5 $ 2,451.6 $ 2,270.1 Operating Income $ 135.6 $ 557.7 $ 648.2 Interest income $ 1.5 $0.8 $ 0.4 Interest expense $ 56.8 $ 53.8 $ 23.4 Income before income tax expense $ 80.3 $ 504.7 $ 625.2 Income tax expense $ 45.6 $ 151.5 $ 222.4 Net income $ 34.7 $ 353.2 $ 402.8 Earnings per share $ 0.34 $ 3.42 $ 3.80 Dividend per share $ 0.38 $ 0.37 $ 0.37 Closing Market Price $ 16.14 $ 24.12 $ 26.20Netflix Inc. GameStop Corp. Strengths . . . Customer Base High Liquidity Financial Performance Sustained Revenue Growth Market Presence Distribution Network Multi-Channel Selling Weaknesses . Liquidity Ratio Dependence on Few Suppliers Financial Performance Opportunities Investment in Broadening Content Growing Global Video Games Market Portfolio Growth in Movies and Entertainment . Growth of Web-Based Stores Growing Mobile Broadband Subscriptions Industry Business Expansion Initiatives Threats Video Piracy Government Regulations . Foreign Exchange Fluctuations Piracy and Unauthorized Copying Market Competition Currency Translation

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