The Gap, Inc. (GAP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.28% | 41.27% | 40.91% | 39.72% | 38.79% | 37.26% | 36.28% | 35.53% | 34.32% | 34.33% | 35.50% | 37.78% | 39.81% | 40.93% | 40.56% | 38.68% | 34.09% | 33.53% | 33.09% | 34.21% |
| Operating profit margin | 7.37% | 7.00% | 6.34% | 5.17% | 3.76% | 2.13% | 1.67% | 0.77% | -0.44% | -0.19% | -0.41% | 2.31% | 4.86% | 5.65% | 5.76% | 3.97% | -6.25% | -8.83% | -8.50% | -6.67% |
| Pretax margin | 7.54% | 7.11% | 6.41% | 5.23% | 3.73% | 1.99% | 1.41% | 0.37% | -0.89% | -0.65% | -3.08% | -0.50% | 1.94% | 2.46% | 4.48% | 2.19% | -7.99% | -10.20% | -9.57% | -6.99% |
| Net profit margin | 5.59% | 5.40% | 5.06% | 4.52% | 3.37% | 0.30% | 0.71% | -0.38% | -1.29% | 0.35% | -2.40% | -0.45% | 1.54% | 3.05% | 4.53% | 2.76% | -4.82% | -7.71% | -7.39% | -5.47% |
The Gap, Inc.'s profitability ratios have shown a mixed trend over the past few years.
1. Gross profit margin has generally improved from around 34% in May 2020 to over 41% in February 2025. This indicates that the company has been able to generate more profit from its sales over time.
2. Operating profit margin started in negative territory in mid-2020, but has consistently improved to over 7% by February 2025. The company has effectively managed its operating expenses to enhance profitability.
3. Pretax margin has also shown a positive trend, starting from negative percentages to around 7.5% by February 2025. This suggests that the company has been able to generate more profit before taxes as a percentage of its total revenue.
4. Net profit margin, which represents the company's bottom line profitability, has seen fluctuations but generally improved from negative values to around 5.6% by February 2025. This improvement indicates that The Gap, Inc. has been successful in controlling its costs and enhancing its overall profitability.
Overall, The Gap, Inc. has shown improvements in its profitability margins over the years, signaling effective cost management and revenue generation strategies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.10% | 6.94% | 6.66% | 6.22% | 4.55% | 0.40% | 1.00% | -0.53% | -1.77% | 0.46% | -3.11% | -0.59% | 2.01% | 3.96% | 5.47% | 3.18% | -4.83% | -7.53% | -7.57% | -6.36% |
| Return on total capital | 25.75% | 25.41% | 24.35% | 20.78% | 15.82% | 9.78% | 7.95% | 4.03% | -1.37% | -0.57% | -10.13% | 1.35% | 11.65% | 14.45% | 18.40% | 11.37% | -18.84% | -27.98% | -27.57% | -26.86% |
| Return on equity (ROE) | 25.86% | 26.25% | 26.44% | 25.05% | 19.34% | 1.79% | 4.77% | -2.65% | -9.05% | 2.14% | -16.44% | -2.93% | 9.40% | 18.16% | 24.93% | 15.43% | -25.44% | -45.68% | -46.07% | -34.87% |
The Gap, Inc.'s profitability ratios have shown fluctuations over the periods analyzed.
1. Operating return on assets (Operating ROA) started at negative levels in May 2020 and improved gradually, reaching 9.36% by February 2025. This indicates the company's ability to generate profit from its operating activities relative to its total assets.
2. The Return on assets (ROA) also began in the negative territory but showed a similar increasing trend over time, reaching 7.10% by February 2025. This ratio reflects the company's overall efficiency in generating profits from its assets.
3. Return on total capital was also negative at the start, but it improved significantly, reaching 25.75% by February 2025. This metric signifies the return the company is earning on its total capital, including both debt and equity.
4. Return on equity (ROE) showed a similar pattern, starting in the negative range and improving steadily to reach 25.86% by February 2025. This ratio demonstrates the company's ability to generate profit for its shareholders from the equity invested in the business.
Overall, the improving trend in profitability ratios indicates that The Gap, Inc. has been able to enhance its operational efficiency and profitability over the periods analyzed, reflecting positively on its financial performance and potential attractiveness to investors.