What does europe — goodwill impairment mean?

The current period expense for writing down the value of European goodwill.

How do you interpret europe — goodwill impairment?

An impairment loss is a negative signal indicating that the business unit is underperforming relative to its acquisition valuation.

How does europe — goodwill impairment compare across companies?

Investors compare this to peer impairment trends to determine if regional underperformance is industry-wide or company-specific.

GameStop GME Europe — Goodwill Impairment

Discontinued — last reported Q4 '19

Similar metrics at other companies

REurope — Goodwill Impairment

$4M—

GPCEurope — Goodwill impairment charge

$507M—

WTSEurope — Goodwill Impairment

$129.7M—

MODEurope — Goodwill Impaired Accumulated Impairment Loss

$8.7M0.0%

RLEurope — Goodwill Impairment

$0—

WTSEurope — Goodwill Impaired Accumulated Impairment Loss

$129.7M0.0%

Other financials

Income statement

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Revenue$835.3M+14.0%

Gross profit$340.3M+34.6%

Operating income$143.3M+1,427%

Net income$389.6M+770%

EPS (diluted)$0.66+633%

Balance sheet

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Cash & equivalents$7.4B+15.4%

Total debt$4.3B+146%

Total equity$5.8B+17.1%

Total assets$11.0B+46.3%

Cash flow

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Operating cash flow$337.4M+75.3%

CapEx$4.5M+55.2%

Free cash flow$332.9M+75.6%

Valuation

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Market cap$9.66B-39.3%

Enterprise value$6.58B-41.5%

P/E12.7×-63.7×

P/S2.6×-1.7×

Profitability

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Gross margin34.4%+3.8pp

Operating margin10.3%—

Net margin20.4%+14.8pp

FCF margin19.8%—

Returns & leverage

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Return on equity14.1%+7.5pp

Debt / equity0.7×+0.4×

Current ratio12.4×+4.0×

Where this comes from

Reported directly by GameStop in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: GameStop’s 10-K, filed March 27, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does europe — goodwill impairment mean?: The current period expense for writing down the value of European goodwill.
How do you interpret europe — goodwill impairment?: An impairment loss is a negative signal indicating that the business unit is underperforming relative to its acquisition valuation.
How does europe — goodwill impairment compare across companies?: Investors compare this to peer impairment trends to determine if regional underperformance is industry-wide or company-specific.