The Gap, Inc. (GAP)
Working capital turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,086,000 | 14,889,000 | 15,616,000 | 16,670,000 | 13,800,000 |
| Total current assets | US$ in thousands | 5,203,000 | 4,395,000 | 4,617,000 | 5,165,000 | 6,008,000 |
| Total current liabilities | US$ in thousands | 3,256,000 | 3,096,000 | 3,256,000 | 4,077,000 | 3,884,000 |
| Working capital turnover | 7.75 | 11.46 | 11.47 | 15.32 | 6.50 |
February 1, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,086,000K ÷ ($5,203,000K – $3,256,000K)
= 7.75
The working capital turnover for The Gap, Inc. has shown fluctuations over the years based on the data provided. In January 30, 2021, the working capital turnover was 6.50, indicating that the company generated $6.50 in sales for every dollar of working capital invested. This ratio improved significantly in the following year, January 29, 2022, reaching 15.32, suggesting a more efficient utilization of working capital.
However, in the subsequent years, there was a slight decline in the working capital turnover ratio. In January 28, 2023, the ratio decreased to 11.47, and it remained relatively stable in February 3, 2024, at 11.46. By February 1, 2025, the working capital turnover decreased further to 7.75.
Overall, the trend indicates that The Gap, Inc. has been able to generate sales more efficiently from its working capital in recent years, despite some fluctuations. It is crucial for the company to continue monitoring and managing its working capital effectively to sustain and improve its operational efficiency.
Peer comparison
Feb 1, 2025