The Gap, Inc. (GAP)

Debt-to-equity ratio

		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	Feb 1, 2020	Nov 2, 2019
Long-term debt	US$ in thousands	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	1,249,000	1,249,000
Total stockholders’ equity	US$ in thousands	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	3,316,000	3,634,000
Debt-to-equity ratio		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	0.38	0.34

August 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,489,000K ÷ $2,901,000K
= 0.51

The debt-to-equity ratio of The Gap, Inc. has shown some fluctuations over the past several quarters. The ratio ranged from 0.34 to 0.98 during the period from November 2019 to August 2024. The trend indicates that the company's reliance on debt compared to equity has varied over time.

In recent quarters, the ratio has generally increased, reaching a peak of 0.98 in October 2020 before decreasing slightly to 0.51 in August 2024. This suggests that the company has been managing its debt levels relative to equity more effectively in recent quarters.

Overall, a debt-to-equity ratio of less than 1 indicates that the company is financing a portion of its assets through equity rather than solely through debt. However, it is important to note that high debt-to-equity ratios may indicate higher financial risk, as the company may struggle to meet its debt obligations in the long term. Investors typically monitor this ratio to assess a company's financial leverage and risk profile.