The Gap, Inc. (GAP)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,044,000 | 11,386,000 | 12,761,000 | 13,769,000 | 13,679,000 |
| Total stockholders’ equity | US$ in thousands | 2,595,000 | 2,233,000 | 2,722,000 | 2,614,000 | 3,316,000 |
| Financial leverage ratio | 4.26 | 5.10 | 4.69 | 5.27 | 4.13 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,044,000K ÷ $2,595,000K
= 4.26
The financial leverage ratio for The Gap, Inc. has fluctuated over the past five years, ranging from 4.13 in February 2020 to 5.27 in January 2021. The ratio measures the proportion of a company's debt to its equity and indicates the extent to which the company relies on borrowed funds. In this case, the company's financial leverage ratio has been relatively high, exceeding 4 in each of the last five years. Higher financial leverage ratios suggest that the company is more reliant on debt financing, which can increase financial risk during economic downturns. It is essential for investors and stakeholders to closely monitor The Gap, Inc.'s financial leverage ratio and assess the company's ability to manage its debt levels effectively.
Peer comparison
Feb 3, 2024