The Gap, Inc. (GAP)
Payables 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 |
| Payables | US$ in thousands | 1,522,000 | 1,196,000 | 1,349,000 | 1,433,000 | 1,406,000 | 1,199,000 | 1,320,000 | 1,388,000 | 1,640,000 | 1,599,000 | 1,951,000 | 1,630,000 | 1,583,000 | 1,530,000 | 1,743,000 | 2,284,000 | 1,629,000 | 971,000 | 1,174,000 | 1,241,000 |
| Payables turnover | 5.89 | 7.56 | 6.76 | 6.49 | 6.85 | 8.29 | 7.77 | 7.52 | 6.21 | 6.29 | 5.14 | 6.00 | 6.24 | 6.29 | 5.22 | 4.09 | 5.77 | 10.02 | 8.73 | 8.24 |
August 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,965,000K ÷ $1,522,000K
= 5.89
The payables turnover ratio for The Gap, Inc. has fluctuated over the past 20 reported periods. The ratio indicates the number of times a company pays off its accounts payable during a specific period. A higher ratio typically suggests that the company is efficiently managing its accounts payable by paying them off quickly.
Looking at the trend, we see some variability in the payables turnover ratio, with values ranging from 4.09 to 10.02 over the period. The company's ability to pay off its payables seems to have improved in recent periods, with the ratio peaking at 10.02 and showing a general upward trend in the most recent periods.
However, a comprehensive analysis would also consider industry benchmarks and the company's own historical performance to fully assess the effectiveness of The Gap, Inc.'s payables management strategy.
Peer comparison
Aug 3, 2024