The Gap, Inc. (GAP)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,488,000 | 1,486,000 | 1,484,000 | 2,216,000 | 1,249,000 |
| Total assets | US$ in thousands | 11,044,000 | 11,386,000 | 12,761,000 | 13,769,000 | 13,679,000 |
| Debt-to-assets ratio | 0.13 | 0.13 | 0.12 | 0.16 | 0.09 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,488,000K ÷ $11,044,000K
= 0.13
The debt-to-assets ratio of The Gap, Inc. has remained relatively stable over the past five years, ranging from 0.09 to 0.16. In general, a lower debt-to-assets ratio indicates a lower level of financial risk as it suggests that the company relies less on debt financing to support its assets.
The slight increase in the ratio from 2020 to 2021 may suggest a temporary increase in the company's debt relative to its assets, possibly due to strategic decisions or economic conditions. However, the ratio decreased in 2022 and remained constant in 2023 and 2024, signaling a better alignment of debt and assets.
Overall, the consistent low to moderate debt-to-assets ratio indicates that The Gap, Inc. has maintained a relatively conservative approach to debt management, which can be viewed positively by investors and creditors in terms of financial stability and risk management.
Peer comparison
Feb 3, 2024