The Gap, Inc. (GAP)
Cash ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,335,000 | 1,873,000 | 1,215,000 | 877,000 | 1,988,000 |
| Short-term investments | US$ in thousands | 253,000 | 0 | 15,000 | 0 | 410,000 |
| Total current liabilities | US$ in thousands | 3,256,000 | 3,096,000 | 3,256,000 | 4,077,000 | 3,884,000 |
| Cash ratio | 0.79 | 0.60 | 0.38 | 0.22 | 0.62 |
February 1, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,335,000K
+ $253,000K)
÷ $3,256,000K
= 0.79
The Gap, Inc.'s cash ratio has shown fluctuations over the past five years, ranging from 0.22 to 0.79. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. The lower cash ratio in January 29, 2022, indicates that the company had relatively less cash available to cover its short-term obligations at that time. However, the ratio improved in the following years, reaching its peak at 0.79 in February 1, 2025, suggesting a stronger liquidity position. Overall, The Gap, Inc. has shown the ability to maintain a reasonable level of cash reserves relative to its short-term liabilities, indicating a sound financial position in terms of liquidity over the analyzed period.
Peer comparison
Feb 1, 2025