The Gap, Inc. (GAP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 1,364,000 | 788,000 |
| Short-term investments | US$ in thousands | 246,000 | 199,000 | 0 | 1,000 | 0 | 0 | 15,000 | 0 | 0 | 0 | 0 | 275,000 | 337,000 | 475,000 | 410,000 | 178,000 | 25,000 | 51,000 | 290,000 | 294,000 |
| 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 |
| Cash ratio | 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 | 0.52 | 0.34 |
August 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,900,000K
+ $246,000K)
÷ $3,224,000K
= 0.67
The cash ratio of The Gap, Inc. has shown fluctuating trends over the past few quarters. The ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents.
The company's cash ratio has ranged from as low as 0.20 to as high as 0.74 in the most recent quarters. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on other current assets or external financing.
In the most recent quarter, the cash ratio was 0.67, showing a healthy position in terms of cash to cover immediate liabilities. However, it's important to monitor the trend over time to ensure that the company maintains a sufficient level of liquidity to meet its short-term obligations.
Overall, The Gap, Inc. has demonstrated varying levels of liquidity, as reflected in its cash ratio, which is an important metric for assessing a company's financial health and ability to meet its short-term obligations.
Peer comparison
Aug 3, 2024