The Gap, Inc. (GAP)
Financial leverage ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,885,000 | 11,044,000 | 11,386,000 | 12,761,000 | 13,769,000 |
| Total stockholders’ equity | US$ in thousands | 3,264,000 | 2,595,000 | 2,233,000 | 2,722,000 | 2,614,000 |
| Financial leverage ratio | 3.64 | 4.26 | 5.10 | 4.69 | 5.27 |
February 1, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,885,000K ÷ $3,264,000K
= 3.64
The financial leverage ratio of The Gap, Inc. has exhibited fluctuations over the past five years. As of February 1, 2025, the ratio stands at 3.64, showcasing a continuous decline from 5.27 on January 30, 2021. This decreasing trend suggests that the company has been reducing its reliance on debt financing in relation to its equity over the years. The notable drop in the ratio may indicate a more conservative approach to capital structure, potentially improving the company's financial stability and solvency. However, it is essential to assess the specific reasons behind this trend to understand the overall financial health and strategic decisions of the company.
Peer comparison
Feb 1, 2025