GME / nft.GameStop.com (185) 財報: 69th July

1001 回覆
10 Like 4 Dislike
2022-12-07 17:27:09
係阿,冇得選擇幾時買。

Wise個fee會根據銀碼變

係IB 入金100K USD都係免fee
2022-12-07 22:58:02
今日繼續都係大哥發圍
2022-12-07 23:00:18
2022-12-07 23:07:20
好明顯今日摸一摸SSR定軍心
2022-12-07 23:40:34
今晚早啲訓,聽朝起身數錢
2022-12-07 23:46:08
樂觀fighting..財報後ss
2022-12-07 23:55:43
如果有nft dividend
2022-12-07 23:57:43
專業分析
2022-12-08 00:04:14
9up擺低 2022 q3 eps

($0.147)
2022-12-08 00:06:48
點解要經CS買???
2022-12-08 01:53:30
因為直出NYSE
唔會PFOF 咁係dark pool 買
2022-12-08 02:27:05
業績前狂壓
睇得出空頭驚到傻
2022-12-08 05:36:26
又可以等多年 日日都有希望 人生充滿正能量
2022-12-08 07:03:04
2022-12-08 08:05:24
再等落去應該讀完四年大學,多謝GME令我成為高學歷人士
2022-12-08 09:11:44
GME - 2022Q3 Free Cash Flow Positive!

https://www.reddit.com/r/Superstonk/comments/zfio5f/accountants_perspective_on_q3_earnings_report/?utm_source=share&utm_medium=ios_app&utm_name=iossmf


Accountants' perspective on Q3 earnings report

TLDR: **Bullish!**

I would imagine that an untrained eye could potentially have a hard time, deciphering what the hell earnings even means, and how to interpret the balance sheet etc. So instead of sleeping, which is what I should be doing, I'd like to make an attempt, to lay it out in laymens terms, why I personally am so happy about the Q3 earnings report.

We need to look at the Statement of Cash Flow.

Essentially what the Consolidated Statement of Cash Flow is, is a removal of everything from this quarters/years/whatevers earnings that doesnt either put money **in** the bank or take money **out**.

I'm Europoor so I'll not get into the specific US laws, cause I dont know them that well. But there are general principles which are generally applied in accounting all over the world. One of these rules is what is called the "matching principle". This states that to make the income statement as reflective of the periods activities as possible, you must include costs (and income) that pertain to the period of this income statement, even though you haven't payed for the goods yet or havent recieved the money from the sale yet. There are also things such as depreciation and amotization that doesnt have anything to do with actual money, its more of a "expected value reduction" of certain assets, because things get worn down over time. So as these things dont actually have anything to do with how much **money**, GameStop <3 is making, they are removed in the cash flow statement. This allows us to see, if GameStop increased or decreased their bank holdings from operating activities this quarter.


So let me take you through my thoughts on some of the item lines in the cash flow statement. (the items I dont mention are items I dont care about)

**Net loss -94.7 mil**

As I've pointed out, and as you're maybe aware; earnings is not necesarily a good measure for how the company is doing. This is because company managers have different tools at their disposal, to mask the true company performance. Simply speaking, there are different ways of making earnings look better or worse depending on the managers intentions. And earnings are certainly not always a good measure of how much money the company is making. Accruals are often used in this regard, if a manager wants short term influence on the income statement. (I'll explain later what income accruals are)

**Depreciation, amortization, stock based compensation etc. Lots of standard lines.**

Nothing interesting to see in this part of the Cash Flow statement. Just standard removal of stuff that doesnt pertain to cash flow.

**Other +11.9**

This one I definately find interesting. If we look back, in Q2 this item was -0.2, in Q1 it was 0, Q4 2021 it was -2.1, Q3 2021 it was -0.3. Now we can't know this for certain, but these 11.9 mil USD sure look like NFT fees to me. If so, that's pretty sweet. Because that means, that this will be a recurring cash flow item. It could also be something else, cause I dont know if it would be allowed to account for NFT fees like that in the US. If anyone could enlighten me on this I would appreciate it greatly! Is it allowed in the US to exclude the NFT fees from the income statement? Cause where I'm from, we would put such an item on "other income" in the income statement. Not that important, I just found it interesting what those 11.9 mil could be.

**Merchandise inventories -414.6 mil USD**

Last year Q3 2021-546.4 mil USD in cash was spent on upkeeping inventory- Keep that in mind during the next step.
2022-12-08 09:12:45

**Accounts payable and accrued liabilities +672.7**

Now, it may at first glance sound shitty, that a big reason why GameStop end up having a possitive cash flow this year, is because they have a large ammount of current debt related to this quarters income statement. But I disagree. Because if we compare inventory costs Q3 2022 vs Q3 2021, they spent less money on inventories this year compared to same quarter last year + cost of sales in the income statement was roughly the same.

Yet at the same time accounts payable and accrued liabilities are **higher** during Q3 this year. So if the majority of value from this item was short term debt meant to delay the payment for new inventory shipments, it should logically be closer to last years amount of accounts payable and accrued liabilities and possibly lower, since they bought less inventory items this Q3. But it's larger. I thnk there is a big chunk of prepayments hidden in this item.

When a customer makes a prepayment, it gets accounted for as a current debt (debt needed to be paid within 1 year), because now the company owes a service/product of a certain value to a customer. Looks to me like GameStop sold more goods and services this quarter, than is shown in the income statement. Remember what i said about the "matching principle"? Some sales doesn't necesarily pertain to Q3, but are prepayments, therefore they are accrued and included in another periods income statement. Even though they recieved the money during this quarter.

Another possiblity for the increase in accruals and accounts payable could be that suppliers extended GameStops time to pay for their orders, but I dont think that this would explain the dramatic increase in value of this item. There are a few possibilities, but I think there are a lot of prepayments here. Could be GameStop memberships for instance.

This is how an income accrual works (example):
Pay 1.200 USD for a years membership
100 USD per month.
3 months in 1 quarter, so 3 months times 100 of monthly payments is included in the income statement of a given quarter, the rest gets represented as debt (services/products owed in the future). The next quarter, 3 times 100 USD gets moved from the balance sheet to the income statement... And so on.
Essentially: Get 1.200 USD in bank - 300 show up as income during a quarterly income statement - 900 show up as debt (accruals) on the balance sheet.

**Net cash flows provided by (used in) operating activities +177.3 (!!)**

Essentially i think its so cool that even with higher accruals on the debt side compared to last quarter, (the higher it is the more it reduces the income of the period) they still manage to deliver a better earnings than last quarter. (-94.7 Q3 2022 vs. -105.4 Q3 2021) But more importantly, they turned this puppy around, and the operations bank account is now growing, and not shrinking. Looks to me like papa Cohen and the gang are knocking it out of the park.

Hope it made sense guys. Love y'all.

Essentially I think we should have very jacked tits right now. That's all I'm trying to say.

\----

Feel free to ask questions, give me critizism if you feel like I missed something or got something wrong. Hope this will help someone understand what the hell is going on with earnings.

P.S.
BUY. HOLD. DRS
2022-12-08 09:15:06
食晒d女啦你

Save some for us.
2022-12-08 11:13:56
2022-12-08 12:43:46
大家點睇drs 單野
我就好放心 sh to the moon
2022-12-08 12:44:03
大家點睇drs 單野
我就好放心 sh to the moon
2022-12-08 12:54:33
冇人話唔準對家DRS哦

明知班散戶咁關注drs #

俾我都一定會搞
2022-12-08 13:53:54
理佢 3721 平住買笑住繼續 DRS
2022-12-08 16:06:19


邊條友非法持有殺傷性武器
2022-12-08 16:39:24
ken伯佢地技窮啦…愈平個float lock得愈快
出糧再課多少少
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