The Gap, Inc. (GAP)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,112,000 | 1,067,000 | 962,000 | 775,000 | 560,000 | 316,000 | 252,000 | 118,000 | -69,000 | -31,000 | -64,000 | 373,000 | 810,000 | 936,000 | 958,000 | 622,000 | -862,000 | -1,241,000 | -1,195,000 | -986,000 |
| Total assets | US$ in thousands | 11,885,000 | 11,853,000 | 11,509,000 | 10,908,000 | 11,044,000 | 11,052,000 | 10,850,000 | 10,932,000 | 11,386,000 | 12,000,000 | 12,171,000 | 12,257,000 | 12,761,000 | 12,780,000 | 13,759,000 | 13,604,000 | 13,769,000 | 14,373,000 | 13,716,000 | 12,710,000 |
| Operating ROA | 9.36% | 9.00% | 8.36% | 7.10% | 5.07% | 2.86% | 2.32% | 1.08% | -0.61% | -0.26% | -0.53% | 3.04% | 6.35% | 7.32% | 6.96% | 4.57% | -6.26% | -8.63% | -8.71% | -7.76% |
February 1, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,112,000K ÷ $11,885,000K
= 9.36%
The operating return on assets (operating ROA) for The Gap, Inc. has shown fluctuations over the period provided. It started with negative percentages in May 2020, August 2020, and October 2020, indicating that the company was not generating profits efficiently relative to its assets during that time.
However, the operating ROA started to improve gradually, turning positive in May 2021 and showing steady growth until August 2024. This positive trend suggests an improvement in the company's operational efficiency in utilizing its assets to generate earnings during this period.
The operating ROA peaked at 9.36% in February 2025, indicating a strong performance and efficient use of assets to generate operating income. This upward trajectory is a positive sign for the company's operational effectiveness and profitability.
Overall, the analysis suggests that The Gap, Inc. has made notable progress in enhancing its operational return on assets, showing an improved ability to generate profits from its asset base over the period in question.
Peer comparison
Feb 1, 2025