The Gap, Inc. (GAP)
Debt-to-capital ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,490,000 | 1,488,000 | 1,486,000 | 1,484,000 | 2,216,000 |
| Total stockholders’ equity | US$ in thousands | 3,264,000 | 2,595,000 | 2,233,000 | 2,722,000 | 2,614,000 |
| Debt-to-capital ratio | 0.31 | 0.36 | 0.40 | 0.35 | 0.46 |
February 1, 2025 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,490,000K ÷ ($1,490,000K + $3,264,000K)
= 0.31
The debt-to-capital ratio for The Gap, Inc. has shown a declining trend over the past five years, decreasing from 0.46 in January 30, 2021, to 0.31 in February 1, 2025. This indicates that the company has been reducing its reliance on debt financing relative to its capital structure. A lower debt-to-capital ratio signifies a lower degree of financial leverage and potentially less financial risk. Overall, the downward trend in the debt-to-capital ratio suggests that The Gap, Inc. has been managing its debt levels effectively and improving its financial stability.
Peer comparison
Feb 1, 2025