The Gap, Inc. (GAP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,885,000 | 11,853,000 | 11,509,000 | 10,908,000 | 11,044,000 | 11,052,000 | 10,850,000 | 10,932,000 | 11,386,000 | 12,000,000 | 12,171,000 | 12,257,000 | 12,761,000 | 12,780,000 | 13,759,000 | 13,604,000 | 13,769,000 | 14,373,000 | 13,716,000 | 12,710,000 |
| 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 |
| Financial leverage ratio | 3.64 | 3.78 | 3.97 | 4.03 | 4.26 | 4.49 | 4.79 | 5.00 | 5.10 | 4.67 | 5.28 | 4.99 | 4.69 | 4.59 | 4.56 | 4.85 | 5.27 | 6.06 | 6.09 | 5.49 |
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 shown a decreasing trend over the past few years based on the provided data. The ratio decreased from 5.49 as of May 2, 2020, to 3.64 as of February 1, 2025. This indicates that the company's level of debt relative to its equity has been declining over this period. A lower financial leverage ratio suggests that the company is relying less on debt to finance its operations and investments, which can be seen as a positive sign of financial stability. It may also mean that the company has been making efforts to strengthen its financial position and reduce its financial risk. However, it is essential to consider other factors and perform a more in-depth analysis to fully assess the implications of this trend on The Gap, Inc.'s overall financial health and performance.
Peer comparison
Feb 1, 2025