The Gap, Inc. (GAP)
Working capital 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 current assets | US$ in thousands | 4,395,000 | 4,617,000 | 5,165,000 | 6,008,000 | 4,516,000 |
| Total current liabilities | US$ in thousands | 3,096,000 | 3,256,000 | 4,077,000 | 3,884,000 | 3,209,000 |
| Working capital turnover | 11.46 | 11.47 | 15.32 | 6.50 | 12.53 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,889,000K ÷ ($4,395,000K – $3,096,000K)
= 11.46
The working capital turnover of The Gap, Inc. has fluctuated over the past five years, as indicated by the trend. The highest turnover was observed in January 2022, with a value of 15.32, suggesting the company efficiently utilized its working capital to generate revenue during that period. On the other hand, the lowest turnover of 6.50 was recorded in January 2021, indicating a lower efficiency in working capital management.
Overall, The Gap, Inc. maintained relatively high working capital turnover ratios in recent years, with values above 10x. This implies that the company effectively leveraged its working capital to support its operations and generate sales. The consistency in achieving double-digit turnover ratios demonstrates a level of efficiency in managing and utilizing its working capital to drive revenue growth. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance in this aspect over time.
Peer comparison
Feb 3, 2024