The Gap, Inc. (GAP)
Return on equity (ROE)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 844,000 | 502,000 | -202,000 | 256,000 | -665,000 |
| Total stockholders’ equity | US$ in thousands | 3,264,000 | 2,595,000 | 2,233,000 | 2,722,000 | 2,614,000 |
| ROE | 25.86% | 19.34% | -9.05% | 9.40% | -25.44% |
February 1, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $844,000K ÷ $3,264,000K
= 25.86%
The Return on Equity (ROE) is an important ratio that measures a company's profitability by assessing its ability to generate profits from shareholders' equity.
Looking at The Gap, Inc.'s ROE over the past five years, there have been fluctuations in the performance of the company. At the start of the period in January 2021, the ROE was notably low at -25.44%, indicating that the company was experiencing a loss on equity. However, by January 2022, the ROE had improved significantly to 9.40%, suggesting a recovery in profitability.
In the following years, The Gap, Inc. continued to show mixed results in terms of ROE. In January 2023, the ROE dropped to -9.05%, signaling a decline in profitability. But by February 2024, the ROE rebounded strongly to 19.34%, indicating a substantial improvement in profitability.
The most recent data point in February 2025 shows a further increase in ROE to 25.86%, reflecting a continued positive trend in the company's profitability and efficiency in generating returns for its shareholders.
Overall, the trend analysis of The Gap, Inc.'s ROE reveals a volatile performance, with periods of both weakness and strength. It is vital for investors and stakeholders to monitor these fluctuations closely to assess the company's financial health and sustainability.
Peer comparison
Feb 1, 2025