The Gap, Inc. (GAP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 13,679,000 | 14,118,000 |
| 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 |
| Financial leverage ratio | 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 | 4.13 | 3.88 |
August 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,509,000K ÷ $2,901,000K
= 3.97
The financial leverage ratio of The Gap, Inc. has shown fluctuations over the periods reported. The financial leverage ratio measures the company's use of debt to finance its operations and assets.
Looking at the trend, the financial leverage ratio increased from 3.88 in November 2019 to a peak of 6.09 in August 2020, indicating an increase in reliance on debt during that period. Subsequently, there was a gradual decrease in the ratio, reaching a low of 3.88 in May 2020, suggesting a reduction in debt usage.
However, from May 2020 onwards, the financial leverage ratio started to increase steadily, reaching 5.28 in July 2022, and then fluctuating around that level until the most recent data point in August 2024 where it stands at 3.97.
Overall, the trend in The Gap, Inc.'s financial leverage ratio indicates periods of increased debt utilization followed by adjustments to lower levels of leverage. It is essential for investors and stakeholders to monitor these trends to assess the company's risk profile and financial stability.
Peer comparison
Aug 3, 2024