The Gap, Inc. (GAP)
Debt-to-equity 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-equity ratio | 0.46 | 0.47 | 0.51 | 0.55 | 0.57 | 0.60 | 0.66 | 0.68 | 0.67 | 0.58 | 0.64 | 0.61 | 0.55 | 0.53 | 0.74 | 0.79 | 0.85 | 0.93 | 0.98 | 0.54 |
February 1, 2025 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,490,000K ÷ $3,264,000K
= 0.46
The debt-to-equity ratio of The Gap, Inc. has shown fluctuations over the specified time period. The ratio decreased from 0.54 as of May 2, 2020, to 0.47 as of November 2, 2024. This indicates that the company's reliance on debt relative to equity has decreased over time. A decreasing trend in the debt-to-equity ratio can suggest improved financial stability and reduced financial risk. However, it is essential to assess the reasons behind this trend to understand whether the company is effectively managing its debt levels and capital structure. Overall, monitoring the debt-to-equity ratio helps in evaluating the company's financial leverage and risk exposure.
Peer comparison
Feb 1, 2025