The Gap, Inc. (GAP)
Return on assets (ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 502,000 | -202,000 | 256,000 | -665,000 | 351,000 |
| Total assets | US$ in thousands | 11,044,000 | 11,386,000 | 12,761,000 | 13,769,000 | 13,679,000 |
| ROA | 4.55% | -1.77% | 2.01% | -4.83% | 2.57% |
February 3, 2024 calculation
ROA = Net income ÷ Total assets
= $502,000K ÷ $11,044,000K
= 4.55%
The Return on Assets (ROA) measures The Gap, Inc.'s profitability in generating earnings from its assets. The trend in ROA over the past five years indicates fluctuations in the company's ability to utilize its assets efficiently.
The Gap, Inc. experienced a negative ROA in January 2023 and January 2021, indicating that the company's assets were not effectively utilized to generate profits during those periods. In contrast, positive ROA figures in the other three years show periods where the company was able to generate earnings from its assets.
The significant positive ROA in February 2024 indicates a notable improvement in profitability and efficient asset management compared to the previous years. This suggests that The Gap, Inc. made effective use of its assets to generate earnings in the most recent fiscal year.
Overall, The Gap, Inc. has shown some variability in its ROA performance over the past five years, with fluctuations between positive and negative figures. The company should continue to monitor and improve its asset utilization to sustain profitability and enhance shareholder value in the future.
Peer comparison
Feb 3, 2024