The Gap, Inc. (GAP)
Payables turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,859,000 | 9,114,000 | 10,257,000 | 10,033,000 | 9,095,000 |
| Payables | US$ in thousands | 1,488,000 | 1,349,000 | 1,320,000 | 1,951,000 | 1,743,000 |
| Payables turnover | 5.95 | 6.76 | 7.77 | 5.14 | 5.22 |
February 1, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,859,000K ÷ $1,488,000K
= 5.95
The payables turnover for The Gap, Inc. has shown fluctuations over the past five years. It was 5.22 times in January 30, 2021, slightly decreasing to 5.14 times by January 29, 2022. The ratio then experienced a significant increase to 7.77 times by January 28, 2023, indicating that the company was managing its accounts payable more efficiently. However, there was a moderate decline to 6.76 times by February 3, 2024, followed by a further decrease to 5.95 times by February 1, 2025. This suggests that in recent years, The Gap, Inc. has been taking longer to pay its suppliers on average, which may have implications for its working capital management and supplier relationships.
Peer comparison
Feb 1, 2025