The Gap, Inc. (GAP)
Cash ratio
| Feb 1, 2025 | Nov 2, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,335,000 | 1,969,000 | 1,900,000 | 1,532,000 | 1,873,000 | 1,351,000 | 1,350,000 | 1,170,000 | 1,215,000 | 679,000 | 708,000 | 845,000 | 877,000 | 801,000 | 2,375,000 | 2,066,000 | 1,988,000 | 2,471,000 | 2,188,000 | 1,028,000 |
| Short-term investments | US$ in thousands | 253,000 | 250,000 | 246,000 | 199,000 | 0 | 0 | 0 | 0 | 15,000 | 0 | 0 | 0 | 0 | 275,000 | 337,000 | 475,000 | 410,000 | 178,000 | 25,000 | 51,000 |
| Total current liabilities | US$ in thousands | 3,256,000 | 3,325,000 | 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 |
| Cash ratio | 0.79 | 0.67 | 0.67 | 0.62 | 0.60 | 0.43 | 0.45 | 0.40 | 0.38 | 0.20 | 0.20 | 0.24 | 0.22 | 0.28 | 0.74 | 0.70 | 0.62 | 0.60 | 0.61 | 0.31 |
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 cash ratio of The Gap, Inc. has been fluctuating over the analyzed periods. It started at 0.31 on May 2, 2020, indicating that for every $1 of current liabilities, the company had $0.31 in cash and cash equivalents available to cover those obligations.
The ratio showed an improving trend over the following quarters, peaking at 0.79 on February 1, 2025. This implies a strengthening ability of the company to meet its short-term liabilities with cash on hand during that period.
However, there were periods of decline, notably on October 30, 2021, where the ratio dropped to 0.28, and on January 29, 2022, where it fell to 0.22. These lower ratios may raise concerns about the company's liquidity position during those specific quarters.
Overall, the increasing trend in the cash ratio from 2020 to 2025 suggests an improving liquidity position for The Gap, Inc., indicating that the company has been managing its cash resources effectively to meet its short-term obligations.
Peer comparison
Feb 1, 2025