The Gap, Inc. (GAP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,595,000	2,233,000	2,722,000	2,614,000	3,316,000
Debt-to-capital ratio		0.36	0.40	0.35	0.46	0.27

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,488,000K ÷ ($1,488,000K + $2,595,000K)
= 0.36

The debt-to-capital ratio of The Gap, Inc. has fluctuated over the past five years, indicating changes in the company's financial leverage and capital structure.

In fiscal year 2024, the debt-to-capital ratio stood at 0.36, a slight decrease from the previous year's ratio of 0.40. This suggests that The Gap reduced its reliance on debt financing in comparison to its total capital structure.

Looking back further, in fiscal year 2022, the company's debt-to-capital ratio was 0.35, indicating a relatively stable level of debt compared to total capital. However, in fiscal year 2021, the ratio increased significantly to 0.46, signaling a higher proportion of debt in the company's capital structure, possibly due to increased borrowing or decreased equity.

On the other hand, in fiscal year 2020, the debt-to-capital ratio was 0.27, indicating a lower debt level relative to total capital, which could suggest a conservative financing approach by The Gap during that period.

Overall, the fluctuations in The Gap's debt-to-capital ratio demonstrate varying degrees of financial leverage over the years, reflecting changes in the company's debt management and capital structure strategies. Investors and stakeholders may consider these trends when evaluating the company's financial health and risk levels.