The Gap, Inc. (GAP)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,889,000 | 15,616,000 | 16,670,000 | 13,800,000 | 16,383,000 |
| Receivables | US$ in thousands | 289,000 | 340,000 | 399,000 | 363,000 | 316,000 |
| Receivables turnover | 51.52 | 45.93 | 41.78 | 38.02 | 51.84 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,889,000K ÷ $289,000K
= 51.52
The receivables turnover ratio for The Gap, Inc. has been consistently increasing over the past five years, indicating that the company has been more efficient in managing its accounts receivable. This ratio measures how many times a company collects its average accounts receivable balance during a given period.
In particular, The Gap, Inc. achieved a receivables turnover of 51.52 in February 3, 2024, which means the company collected its outstanding receivables over 51 times during that fiscal year. This represents a significant improvement from the ratio of 38.02 in January 30, 2021.
The upward trend in receivables turnover suggests that The Gap, Inc. has been successful in effectively collecting payments from its customers, potentially reducing the risk of bad debts and improving its overall cash flow management. This efficiency in collecting receivables can contribute to a healthier financial position for the company.
Overall, the increasing trend in receivables turnover for The Gap, Inc. reflects positively on its management of accounts receivable and indicates a more efficient utilization of its assets in generating revenue.
Peer comparison
Feb 3, 2024