The Gap, Inc. (GAP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,595,000 | 2,233,000 | 2,722,000 | 2,614,000 | 3,316,000 |
| ROE | 19.34% | -9.05% | 9.40% | -25.44% | 10.59% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $502,000K ÷ $2,595,000K
= 19.34%
The return on equity (ROE) for The Gap, Inc. has fluctuated over the past five years, as evidenced by the following figures:
- Feb 3, 2024: 19.34%
- Jan 28, 2023: -9.05%
- Jan 29, 2022: 9.40%
- Jan 30, 2021: -25.44%
- Feb 1, 2020: 10.59%
The positive ROE in 2024 signifies that the company generated a profit relative to its shareholders' equity. This could imply efficient management of assets and liabilities to generate returns for shareholders.
The negative ROE in 2023 and 2021 indicates that the company's net income was insufficient to cover the shareholders' equity, possibly due to higher expenses or lower revenues. It suggests a concerning performance as the company was not able to provide a return to its equity holders.
The positive ROE in 2022 and 2020 shows an improvement in profitability relative to equity, indicating that the company performed better in turning investment into profit for shareholders during those years.
Overall, The Gap, Inc.'s ROE performance shows variability over the years, with a mix of positive and negative results. Investors and stakeholders may want to closely monitor the company's future ROE trends to assess its financial health and performance.
Peer comparison
Feb 3, 2024