The Gap, Inc. (GAP)
Payables 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 |
| Payables | US$ in thousands | 1,349,000 | 1,320,000 | 1,951,000 | 1,743,000 | 1,174,000 |
| Payables turnover | 6.76 | 7.77 | 5.14 | 5.22 | 8.73 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,114,000K ÷ $1,349,000K
= 6.76
The payables turnover ratio for The Gap, Inc. has fluctuated over the past five years. In the most recent fiscal year (2024), the company had a payables turnover of 6.76, indicating that the company paid its suppliers approximately 6.76 times during the year. This represents a decrease from the previous year's ratio of 7.77.
In comparison to two years ago (2022) when the payables turnover was 5.14, there has been an improvement in the efficiency of paying suppliers. However, it is still lower than the ratio from three years ago (2021) which was 5.22.
The highest payables turnover ratio observed in the last five years was in 2020, at 8.73, suggesting that the company was more efficient in managing its accounts payable during that year.
Overall, while the payables turnover ratio for The Gap, Inc. has shown some variability, it is essential for the company to continue monitoring and managing its payables effectively to ensure healthy working capital management and relationships with its suppliers.
Peer comparison
Feb 3, 2024