The Gap, Inc. (GAP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.49 | 1.50 | 1.42 | 1.39 | 1.41 | 1.47 | 1.42 | 1.49 | 1.37 | 1.44 | 1.27 | 1.36 | 1.70 | 1.65 | 1.55 | 1.44 | 1.46 | 1.23 | 1.41 | 1.43 |
August 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,809,000K ÷ $3,224,000K
= 1.49
The current ratio of The Gap, Inc. has shown fluctuations over the past 20 quarters, ranging from 1.23 to 1.70. The current ratio measures the company's ability to cover its short-term obligations with its current assets. The ratio has generally remained above 1, indicating that the company has more current assets than current liabilities, which is a positive sign.
The current ratio was at its highest in January 2023 at 1.70, suggesting strong liquidity position at that time. Conversely, the lowest ratio of 1.23 was recorded in November 2019, indicating a weaker ability to meet short-term obligations.
Overall, The Gap, Inc.'s current ratio has shown some variability, but has generally remained above 1. This indicates that the company has sufficient current assets to cover its short-term liabilities, providing a buffer for unexpected expenses or downturns in business operations.
Peer comparison
Aug 3, 2024