GameStop Corp finances its long-term debt by issuing unsecured interest bearing senior notes. At the end of fiscal year 2016 the balance of long-term debt is $350 million (principal) which were issued in September 2014, and are to be redeemed in October 2019, there are also other long-term liabilities which are related income tax liability. Interest on these notes is payable semi-annually in arrears. In March 2016, it issued further unsecured notes having principal amount of $475 million, these are to be redeemed March 15, 2021. This changes company's capital structure significantly. Its capital structure for fiscal year 2016 is 0.14 (long term debt/long term debt+equity) which means the company has 14% debt in its capital structure or it finances 14% of its assets with long term debt, and for fiscal year 2017 company's capital structure is 0.27(rounded) which means company's capital structure has 27% of long term debt in its capital structure. GameStop has increased its debt by 136% during the fiscal year 2017. Company has no short-term loan; however, it has accounts payable and accrued liabilities which are more than its long-term debt. Its current liabilities consist of customer liabilities, deferred revenue, taxes etc. It seems that company finances its current assets with current liabilities. But it must pay current liabilities and it may need to issue short term or further long-term debt to finance its working capital.

What are the consequences of this?

Is this normal for the industry?