The Gap, Inc. (GAP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 844,000 | 823,000 | 767,000 | 678,000 | 502,000 | 44,000 | 108,000 | -58,000 | -202,000 | 55,000 | -379,000 | -72,000 | 256,000 | 506,000 | 753,000 | 433,000 | -665,000 | -1,083,000 | -1,038,000 | -808,000 |
| Total stockholders’ equity | US$ in thousands | 3,264,000 | 3,135,000 | 2,901,000 | 2,707,000 | 2,595,000 | 2,460,000 | 2,263,000 | 2,185,000 | 2,233,000 | 2,571,000 | 2,305,000 | 2,454,000 | 2,722,000 | 2,787,000 | 3,020,000 | 2,806,000 | 2,614,000 | 2,371,000 | 2,253,000 | 2,317,000 |
| 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% |
February 1, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $844,000K ÷ $3,264,000K
= 25.86%
The return on equity (ROE) of The Gap, Inc. has shown significant fluctuations over the past few years. The ROE was negative for most of the fiscal year 2020, indicating that the company's net income was insufficient to cover shareholder equity during that period.
However, a positive turnaround began in the second quarter of fiscal year 2021, with ROE increasing to 15.43%. This positive trend continued through the following quarters, reaching a peak of 26.44% in the third quarter of fiscal year 2024. The improvement in ROE during this period suggests that the company was able to generate more profits relative to its shareholder equity.
Although there were some fluctuations in the ROE figures afterwards, the general trend remained positive up to the first quarter of fiscal year 2025, reflecting The Gap, Inc.'s ability to efficiently utilize shareholder equity to generate profits. The overall increase in ROE indicates that the company's profitability and efficiency in generating returns for shareholders have improved over the analyzed period.
Peer comparison
Feb 1, 2025