The Gap, Inc. (GAP)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,873,000 | 1,215,000 | 877,000 | 1,988,000 | 1,364,000 |
| Short-term investments | US$ in thousands | 0 | 15,000 | 0 | 410,000 | 290,000 |
| Total current liabilities | US$ in thousands | 3,096,000 | 3,256,000 | 4,077,000 | 3,884,000 | 3,209,000 |
| Cash ratio | 0.60 | 0.38 | 0.22 | 0.62 | 0.52 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,873,000K
+ $0K)
÷ $3,096,000K
= 0.60
The cash ratio of The Gap, Inc. has shown fluctuations over the past five years, ranging from 0.22 in January 29, 2022, to 0.62 in January 30, 2021. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger ability to meet short-term obligations without relying on external sources.
In the most recent period, as of February 3, 2024, The Gap, Inc. had a cash ratio of 0.60, indicating that for every $1 of current liabilities, the company had $0.60 of cash and cash equivalents available. This suggests an improvement in the company's liquidity position compared to the previous year. However, it is important to analyze the trend over multiple periods to assess the company's consistency in managing its liquidity effectively.
Overall, the fluctuating trend in The Gap, Inc.'s cash ratio highlights the importance of closely monitoring the company's cash management strategies and liquidity position to ensure stability and resilience in meeting its short-term financial obligations.
Peer comparison
Feb 3, 2024