The Gap, Inc. (GAP)

Inventory turnover

		Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019
Cost of revenue (ttm)	US$ in thousands	8,965,000	9,043,000	9,114,000	9,307,000	9,626,000	9,938,000	10,257,000	10,440,000	10,192,000	10,053,000	10,033,000	9,787,000	9,879,000	9,617,000	9,095,000	9,339,000	9,404,000	9,727,000	10,250,000	10,228,000
Inventory	US$ in thousands	2,107,000	1,952,000	1,995,000	2,377,000	2,226,000	2,299,000	2,389,000	3,043,000	3,135,000	3,169,000	3,018,000	2,721,000	2,281,000	2,370,000	2,451,000	2,747,000	2,242,000	2,217,000	2,156,000	2,720,000
Inventory turnover		4.25	4.63	4.57	3.92	4.32	4.32	4.29	3.43	3.25	3.17	3.32	3.60	4.33	4.06	3.71	3.40	4.19	4.39	4.75	3.76

August 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,965,000K ÷ $2,107,000K
= 4.25

The inventory turnover ratio for The Gap, Inc. has shown some fluctuations over the past several reporting periods. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period.

From Nov 2, 2019, to Aug 3, 2024, The Gap's inventory turnover ratio has ranged from a low of 3.17 to a high of 4.75, with an average of approximately 4.00. This indicates that, on average, the company's inventory is turning over about 4 times a year.

A higher inventory turnover ratio generally signifies that a company is efficiently managing its inventory levels and selling its products quickly. Conversely, a lower ratio may indicate overstocking or potential issues with sales and demand.

The inventory turnover ratio for The Gap, Inc. has been relatively consistent over the analyzed periods, with slight variations. It is important for the company to monitor and optimize its inventory turnover to ensure efficient operations and profitability.