The Gap, Inc. (GAP)

Total asset 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
Total assets	US$ in thousands	11,044,000	11,386,000	12,761,000	13,769,000	13,679,000
Total asset turnover		1.35	1.37	1.31	1.00	1.20

February 3, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $14,889,000K ÷ $11,044,000K
= 1.35

The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover indicates better asset utilization. The trend of The Gap, Inc.'s total asset turnover over the past five years shows some variability, with the ratio fluctuating between 1.00 and 1.37.

In 2024, the total asset turnover ratio was 1.35, indicating that for every dollar of total assets, the company generated $1.35 in sales revenue. This suggests an efficient use of assets to drive sales.

Comparing this to previous years:
- In 2023, the total asset turnover ratio was slightly higher at 1.37, showing continued efficiency in asset utilization.
- In 2022, the ratio dropped to 1.31, suggesting a slight decrease in asset efficiency compared to the previous year.
- In 2021, the total asset turnover was at 1.00, signaling that the company may have faced challenges in leveraging its assets to generate revenue effectively.
- In 2020, the ratio improved to 1.20, indicating better asset utilization than in 2021 but lower than the more recent years.

Overall, The Gap, Inc. has shown decent asset turnover performance in recent years, maintaining ratios above 1.0, which generally reflects effective asset management. The slight fluctuations in the ratio may be influenced by various factors such as changes in sales volume, asset composition, or operational efficiency. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.