The Gap, Inc. (GAP)
Number of days of payables
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.76 | 7.77 | 5.14 | 5.22 | 8.73 | |
| Number of days of payables | days | 54.03 | 46.97 | 70.98 | 69.95 | 41.81 |
February 3, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.76
= 54.03
The number of days of payables for The Gap, Inc. has fluctuated over the past five years, ranging from a low of 41.81 days in February 2020 to a high of 70.98 days in January 2022. Generally, a lower number of days of payables indicates that the company is taking less time to pay its suppliers, which can potentially improve cash flow but may strain supplier relationships. Conversely, a higher number of days of payables suggests that the company is taking longer to settle its debts with suppliers. The trend for The Gap, Inc. indicates some variability in managing its payables over the years, with a significant increase in 2022 followed by a decrease in the subsequent years. It's essential for the company to strike a balance between managing its working capital effectively and maintaining strong relationships with its suppliers.
Peer comparison
Feb 3, 2024