The Gap, Inc. (GAP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 37.44% | 37.37% |
| Operating profit margin | 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% | 3.50% | 7.29% |
| Pretax margin | 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% | 3.22% | 7.02% |
| Net profit margin | 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% | 2.14% | 4.97% |
The profitability ratios of The Gap, Inc. have shown fluctuations over the past few periods. The gross profit margin has been relatively stable, ranging from 34% to 40%, indicating consistent ability to generate profits after accounting for the cost of goods sold.
However, the operating profit margin and pretax margin have varied significantly, with the operating profit margin ranging from -8.83% to 6.34% and the pretax margin ranging from -10.20% to 6.41%. These fluctuations suggest fluctuations in operational efficiency and the impact of non-operating expenses on the company's profitability.
The net profit margin, which reflects the company's bottom line profitability, has also shown volatility, ranging from -7.71% to 5.06%. This indicates that The Gap, Inc. has faced challenges in managing its costs and expenses to ensure consistent profitability over the periods analyzed.
Overall, while The Gap, Inc. has maintained a relatively healthy gross profit margin, the company's operational and net profitability have shown variability, suggesting the need for continued focus on cost management and operational efficiency to improve long-term financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 4.20% | 8.44% |
| Return on assets (ROA) | 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% | 2.57% | 5.74% |
| Return on total capital | 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% | 13.23% | 25.07% |
| Return on equity (ROE) | 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% | 10.59% | 22.32% |
The profitability ratios of The Gap, Inc. have fluctuated over the past several quarters.
- Operating return on assets (Operating ROA) increased from 8.44% in Nov 2019 to 8.36% in Aug 2024, showing a generally positive trend in utilizing assets to generate operating profits.
- Return on assets (ROA) improved from 5.74% in May 2020 to 6.66% in Aug 2024, indicating a better ability to generate profits relative to total assets.
- Return on total capital increased from 25.07% in May 2020 to 24.35% in Aug 2024, reflecting enhanced efficiency in generating returns from both debt and equity capital.
- Return on equity (ROE) fluctuated, reaching 26.44% in Aug 2024, showing variability in generating returns for shareholders.
Overall, the profitability ratios of The Gap, Inc. suggest improvements in operational efficiency and profitability over the analyzed period, but there are fluctuations that indicate the need for continued monitoring and strategic management of assets and capital to sustain and enhance profitability in the future.