The Gap, Inc. (GAP)
Working capital turnover
| 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 | Feb 1, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 16,383,000 | 16,332,000 |
| Total current assets | US$ in thousands | 4,809,000 | 4,197,000 | 4,395,000 | 4,374,000 | 4,239,000 | 4,283,000 | 4,617,000 | 5,038,000 | 4,949,000 | 5,005,000 | 5,165,000 | 5,207,000 | 6,194,000 | 6,002,000 | 6,008,000 | 6,362,000 | 5,337,000 | 4,216,000 | 4,516,000 | 4,572,000 |
| Total current liabilities | US$ in thousands | 3,224,000 | 2,806,000 | 3,096,000 | 3,139,000 | 3,007,000 | 2,918,000 | 3,256,000 | 3,381,000 | 3,614,000 | 3,472,000 | 4,077,000 | 3,823,000 | 3,651,000 | 3,638,000 | 3,884,000 | 4,431,000 | 3,649,000 | 3,431,000 | 3,209,000 | 3,192,000 |
| Working capital turnover | 9.57 | 10.78 | 11.46 | 12.01 | 12.26 | 11.29 | 11.47 | 9.59 | 11.84 | 10.54 | 15.32 | 11.97 | 6.54 | 6.63 | 6.50 | 7.28 | 8.33 | 18.83 | 12.53 | 11.83 |
August 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,173,000K ÷ ($4,809,000K – $3,224,000K)
= 9.57
The working capital turnover of The Gap, Inc. has varied over the past several quarters, ranging from a low of 6.50 to a high of 15.32.
The working capital turnover indicates how efficiently the company is using its working capital to generate sales. A higher turnover generally signifies that the company is effectively using its working capital to support its operations and generate revenue.
Looking at the trend, there seems to be some fluctuation in the working capital turnover ratio, with peaks observed in Jan 2022 and May 2020. These peaks may indicate periods of higher efficiency in utilizing working capital to generate sales.
On the other hand, there are also periods of lower working capital turnover, such as Jul 2021 and Jan 2021. These lower ratios may suggest that the company is not effectively utilizing its working capital to support its sales activities during these periods.
Overall, further analysis of the company's financial performance and operational strategies would be needed to fully understand the reasons behind the fluctuations in the working capital turnover ratio over the specified time period.
Peer comparison
Aug 3, 2024