The Gap, Inc. (GAP)

Receivables turnover

Feb 1, 2025 Nov 2, 2024 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
Revenue (ttm) US$ in thousands 15,086,000 15,235,000 15,173,000 15,001,000 14,889,000 14,834,000 15,106,000 15,415,000 15,616,000 15,898,000 15,802,000 16,156,000 16,670,000 16,569,000 16,620,000 15,684,000 13,800,000 14,050,000 14,054,000 14,784,000
Receivables US$ in thousands 301,000 — — — 289,000 — — — 340,000 — — — 399,000 — — — 363,000 — — —
Receivables turnover 50.12 — — — 51.52 — — — 45.93 — — — 41.78 — — — 38.02 — — —

February 1, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,086,000K ÷ $301,000K
= 50.12

The receivables turnover ratio for The Gap, Inc. provides insight into how efficiently the company is collecting payments from its customers. The data shows that the receivables turnover was not calculable for most of the periods provided, indicating that the company did not report specific figures for receivables or credit sales during those times.

However, based on the available data points, the receivables turnover ratio improved over time, from 38.02 on January 30, 2021, to 51.52 on February 3, 2024. This indicates that The Gap, Inc. was able to collect its accounts receivable more frequently in the later periods, which is generally a positive trend.

A higher receivables turnover ratio reflects better liquidity and efficient management of accounts receivable. It suggests that the company is able to convert its credit sales into cash more quickly, which can help improve cash flow and reduce the risk of bad debts.

Overall, the increasing trend in receivables turnover for The Gap, Inc. implies that the company is effectively managing its credit sales and collections process, which can be favorable for its financial health and operational efficiency.