Gap Inc Financial Statement Analysis LR - 1493 Words

Financial Statement Analysis for Gap Inc. Company Background Gap Inc. is a leading global apparel retail company offering apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Having distinct brands across multiple channels and countries allows Gap Inc. a strong competitive advantage. The company currently has 375 stores in 41 countries. Products are also online through Company-owned websites. Merchandise is purchased from more than 1,000 vendors having factories in approximately 40 countries. No vendor accounted for more than 5 percent of total purchases in 2013 and approximately 98 percent of purchases are from outside the United†¦show more content†¦The next set of ratios evaluate solvency, which is the company’s ability to meet its long-term obligations. The first ratio, times interest earned, represents a margin of protections for creditors. Gap Inc. generated $35.23 in income for each $1 of interest expense, which increased quite substantially from 2011 and 2012. The next ratio to evaluate for Gap Inc. is the debt-to-equity ratio, which decreased from 1.69 in 2011 to 1.56 in 2013. This tells us that Gap Inc. has $1.69 in liabilities for every $1 in stockholders’ equity. Gap Inc. v. J. Crew Group One of Gap Inc.’s biggest competitors is J. Crew Group because they have similar branding strategies and product offerings. J. Crew Group is an internationally recognized brand that offers apparel and accessories and differentiates itself through high standards of quality, style, design, and fabrics. The company operates stores and websites both domestically and internationally, and designs, sells, and markets products under the J. Crew, Crewcuts, and Madewell brands. Their customer base includes people who are affluent, college-educated, professional, and fashion conscious. They operate a total of 451 stores located in the United States, Canada, and the United Kingdom. By comparing the profitability of the two major international retailers, we see that J. Crew Group has a lower return on assets at an average of 5% for 2011-2013 compared to Gap Inc., which has an average ROA of 16% forShow MoreRelated7-Eleven8138 Words   |  33 Pagesresearch projects. Case Study: an in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education). Technical Research Report: a traditional academically rigorous research paper with detailed methodology, analysis, findings and references. About the Center for Information Systems Research CISR MISSION CISR was founded in 1974 and has a strong track record of practice based research on the management of information technology. As we enter the twentyfirstRead MoreFinal Mngp4155 Words   |  17 Pages 24th May 2012 MNGT2001 Alixandara Sutherland Laura Tumbers Katie Horne Laura Field Executive Summary Table of Contents 1. Introduction 2. Strategic analysis 1. External analysis 1. General environment 2. Specific environment 2. Internal analysis 1. Competitive strengths 2. Competitive position in the market 3. Weaknesses 3. Conclusion on organisations competitive position Read MorePediatric Safety and Quality11531 Words   |  46 Pagesexpertise that health care professionals require enhance the health services they provide to children and families. IPPC is a health program developed by the Center for Applied Ethics and Professional Practice, a branch of Education Development Center, Inc. The Education Development Center is a charitable organization that comprises over and above 600 specialized employees, operating on more than 300 educational programs all over the United States and in roughly 27 other nations. Education DevelopmentRead MoreArticle: Performance Appraisal and Performance Management35812 Words   |  144 Pages6|Page IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 5 (Sep,-Oct. 2012), PP 07-12 www.iosrjournals.org Studies on the implementation of System Application Product (SAP) Materials Management (MM Module) for financial support in Sugar cane cultivation 1,2 S. Chandraju1, B. Raviprasad2, C. S. Chidan Kumar3 Department of Studies in Sugar Technology,Sir M. Vishweshwaraya Post graduate Center, University of Mysore, Tubinskere - 571402,Mandya, Karnataka, IndiaRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pageslamentable. Taken together, the key themes and processes that have been selected as the focus for each of the eight essays provide a way to conceptualize the twentieth century as a coherent unit for teaching, as well as for written narrative and analysis. Though they do not exhaust the crucial strands of historical development that tie the century together—one could add, for example, nationalism and decolonization—they cover in depth the defining phenomena of that epoch, which, as the essays demonstrate