The Gap, Inc. (GAP)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	1,490,000	1,489,000	1,489,000	1,489,000	1,488,000	1,488,000	1,487,000	1,487,000	1,486,000	1,486,000	1,485,000	1,485,000	1,484,000	1,484,000	2,220,000	2,218,000	2,216,000	2,214,000	2,212,000	1,250,000
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
Debt-to-capital ratio		0.31	0.32	0.34	0.35	0.36	0.38	0.40	0.40	0.40	0.37	0.39	0.38	0.35	0.35	0.42	0.44	0.46	0.48	0.50	0.35

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 of The Gap, Inc. has shown some fluctuations over the period analyzed. The ratio decreased from 0.50 in August 2020 to 0.31 in February 2025. This suggests that the company has been successful in lowering its debt relative to its total capital over this time frame. A lower debt-to-capital ratio indicates a lower level of financial risk, as it signifies that the company is relying less on debt to finance its operations and investments. However, it is important to note that a consistently low ratio may also indicate underutilization of debt financing, potentially missing out on opportunities for growth. Overall, a decreasing trend in the debt-to-capital ratio can be viewed positively as it indicates improved financial health and potentially enhanced stability for The Gap, Inc.