The Gap, Inc. (GAP)

Inventory turnover

		Feb 1, 2025	Nov 2, 2024	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
Cost of revenue (ttm)	US$ in thousands	8,859,000	8,948,000	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
Inventory	US$ in thousands	2,067,000	2,331,000	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
Inventory turnover		4.29	3.84	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

February 1, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,859,000K ÷ $2,067,000K
= 4.29

The inventory turnover for The Gap, Inc. has shown fluctuations over the reported periods. The inventory turnover ratio indicates how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced over a certain period.

From May 2, 2020, to February 1, 2025, the inventory turnover has ranged from a low of 3.17 to a high of 4.63. During this time frame, it reached its lowest point in April 30, 2022, and its highest in May 4, 2024.

Overall, the trend in inventory turnover shows some variability with occasional peaks and troughs. It may indicate changes in sales volume, inventory management practices, or market demand for The Gap, Inc.'s products. Monitoring this ratio can provide insights into the company's operational efficiency and inventory management strategies.