The Gap, Inc. (GAP)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,114,000 | 10,257,000 | 10,033,000 | 9,095,000 | 10,250,000 |
| Inventory | US$ in thousands | 1,995,000 | 2,389,000 | 3,018,000 | 2,451,000 | 2,156,000 |
| Inventory turnover | 4.57 | 4.29 | 3.32 | 3.71 | 4.75 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,114,000K ÷ $1,995,000K
= 4.57
The trend in The Gap, Inc.'s inventory turnover over the past five years has shown some fluctuations. Starting from 4.75 in February 2020, the ratio declined to 3.71 in January 2021, before slightly increasing to 3.32 in January 2022. Subsequently, there was a notable improvement with the inventory turnover ratio surging to 4.29 in January 2023, and peaking at 4.57 in February 2024.
Overall, the increase in inventory turnover from 2022 to 2024 indicates that The Gap, Inc. has been more efficient in managing its inventory levels and converting them into sales. This could be attributed to better inventory management practices, demand forecasting, and effective sales strategies implemented by the company during this period. The upward trend in inventory turnover is generally a positive indicator of operational effectiveness and financial health.
Peer comparison
Feb 3, 2024