The Gap, Inc. (GAP)
Quick ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 301,000 | 289,000 | 340,000 | 399,000 | 363,000 |
| Total current liabilities | US$ in thousands | 3,256,000 | 3,096,000 | 3,256,000 | 4,077,000 | 3,884,000 |
| Quick ratio | 0.89 | 0.70 | 0.48 | 0.31 | 0.71 |
February 1, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,335,000K
+ $253,000K
+ $301,000K)
÷ $3,256,000K
= 0.89
The quick ratio of The Gap, Inc. has exhibited fluctuations over the past five years. On January 30, 2021, the quick ratio was 0.71, indicating that the company had $0.71 in liquid assets available to cover each dollar of its current liabilities. This ratio decreased significantly to 0.31 by January 29, 2022, suggesting a potential liquidity strain.
Subsequently, the quick ratio improved to 0.48 on January 28, 2023, indicating a slight recovery in the company's ability to meet its short-term obligations with its liquid assets. By February 3, 2024, the quick ratio further improved to 0.70, indicating a healthier liquidity position compared to the previous year.
As of February 1, 2025, the quick ratio increased substantially to 0.89, reflecting an even stronger ability for The Gap, Inc. to meet its short-term liabilities with its quick assets. Overall, while the quick ratio of The Gap, Inc. experienced fluctuations over the years, the trend suggests an improvement in the company's liquidity position towards the most recent reporting period.
Peer comparison
Feb 1, 2025