GAP Inc key statistics and ratios

In fiscal 2026, GAP Inc had return on equity of 23.1%, an operating margin of 7.3%, debt equal to 39.3% of equity and a current ratio of 1.75. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

GAP Inc: financial ratios, annual
Fiscal year	2010Jan 2010	2011Jan 2011	2012Jan 2012	2013Feb 2013	2014Feb 2014	2015Jan 2015	2016Jan 2016	2017Jan 2017	2018Feb 2018	2019Feb 2019	2020Feb 2020	2021Jan 2021	2022Jan 2022	2023Jan 2023	2024Feb 2024	2025Feb 2025	2026Jan 2026	LTMAug 2026
Gross margin	40.3%	40.2%	36.2%	39.4%	39.0%	38.3%	36.2%	36.3%	38.3%	38.1%	37.4%	34.1%	39.8%	34.3%	38.8%	41.3%	40.8%	43.3%
Operating margin	12.8%	13.4%	9.9%	12.4%	13.3%	12.7%	9.6%	7.7%	9.3%	8.2%	3.5%	−6.2%	4.9%	−0.4%	3.8%	7.4%	7.3%	11.0%
Net margin	7.8%	8.2%	5.7%	7.3%	7.9%	7.7%	5.8%	4.4%	5.3%	6.0%	2.1%	−4.8%	1.5%	−1.3%	3.4%	5.6%	5.3%	8.1%
Free-cash-flow margin	11.2%	8.1%	5.6%	8.2%	6.4%	8.6%	5.5%	7.7%	4.1%	4.1%	4.3%	−1.1%	0.7%	−0.5%	7.5%	6.9%	5.4%	6.2%
Return on equity	22.5%	26.8%	24.4%	40.2%	43.0%	41.8%	33.3%	24.8%	28.0%	30.0%	10.2%	−22.4%	9.6%	−8.2%	20.8%	28.8%	23.1%	32.2%
Return on assets	13.8%	16.0%	11.5%	15.2%	16.7%	16.2%	12.1%	9.0%	10.9%	12.5%	3.2%	−4.8%	1.9%	−1.7%	4.5%	7.4%	6.7%	9.8%
Asset turnover	1.78	1.95	2.01	2.10	2.11	2.12	2.08	2.06	2.03	2.07	1.51	1.01	1.26	1.29	1.33	1.32	1.25	1.20
Current ratio	2.19	1.87	2.02	1.76	1.81	1.93	1.57	1.76	1.86	1.96	1.41	1.55	1.27	1.42	1.42	1.60	1.75	1.82
Debt to equity	0.0%	0.1%	60.4%	43.1%	45.5%	45.4%	68.0%	45.2%	39.7%	35.2%	37.7%	84.8%	54.5%	66.5%	57.3%	45.6%	39.3%	37.8%
Interest cover (operating income ÷ interest)	—	—	19.4x	22.3x	35.2x	27.8x	25.8x	15.9x	20.0x	18.7x	7.6x	n/m	4.9x	n/m	6.2x	12.8x	12.0x	18.1x
Effective tax rate	39.3%	39.3%	39.2%	39.0%	38.8%	37.3%	37.5%	39.9%	40.4%	24.1%	33.5%	—	20.7%	—	9.7%	25.8%	27.9%	26.8%
R&D as % of revenue	—	—	—	—	—	—	—	0.3%	0.3%	0.3%	0.3%	0.3%	0.2%	0.3%	0.2%	0.3%	0.4%	—
Capital spending as % of revenue	2.4%	3.8%	3.8%	4.2%	4.1%	4.3%	4.6%	3.4%	4.6%	4.3%	4.3%	2.8%	4.2%	4.4%	2.8%	3.0%	3.1%	3.8%
Free cash flow ÷ net income	144.6%	98.6%	97.8%	112.5%	80.9%	112.1%	94.3%	176.8%	76.5%	67.4%	202.0%	—	44.9%	—	221.5%	123.1%	100.9%	76.7%
Dividends ÷ net income	21.2%	20.9%	28.3%	21.1%	25.1%	30.3%	41.0%	54.3%	42.6%	37.2%	103.7%	—	88.3%	—	44.2%	26.7%	30.3%	20.0%
Dividends and buybacks ÷ free cash flow	49.0%	186.3%	285.6%	99.5%	125.6%	110.4%	160.4%	30.7%	104.2%	114.1%	79.5%	—	371.3%	—	20.0%	28.9%	48.8%	89.1%

US$ thousands unless shown otherwise. Fiscal quarters.

GAP Inc: financial ratios, quarterly
Quarter	2025 Q3Nov 2024	2025 Q4Feb 2025	2026 Q1May 2025	2026 Q2Aug 2025	2026 Q3Nov 2025	2026 Q4Jan 2026	2027 Q1May 2026	2027 Q2Aug 2026
Gross margin	42.7%	38.9%	41.8%	41.2%	42.4%	38.1%	40.5%	52.8%
Operating margin	9.3%	6.2%	7.5%	7.8%	8.5%	5.4%	12.7%	18.5%
Net margin	7.2%	5.0%	5.6%	5.8%	6.0%	4.0%	9.7%	13.7%
Free-cash-flow margin	3.7%	12.0%	−6.4%	9.4%	3.9%	12.8%	2.2%	5.0%
Current ratio	1.54	1.60	1.71	1.68	1.72	1.75	1.81	1.82
Debt to equity	47.5%	45.6%	44.9%	43.4%	40.9%	39.3%	40.8%	37.8%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

6 of 6 checks passed · August 1, 2026

What it owns · $12.9bn

Short-term assets $5.9bnLonger-term assets $7.0bn

What it owes, and who funded it · $7.2bn

Short-term liabilities $3.2bnShareholders' equity $4.0bn

Short-term assets cover short-term liabilities $5.9bn of assets due within a year against $3.2bn of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $2.1bn of cash against $1.5bn of debt.
Debt below 40% of shareholders' equity Debt is 38% of equity.
Debt burden no higher than five years ago Debt to equity moved from 55% to 38% over five years.
A year's operating cash flow covers at least 20% of debt $1.5bn of operating cash flow against $1.5bn of debt.
Operating profit covers interest at least five times over Operating income of $1.7bn against $93m of interest.

From GAP Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

46 /100

Moderate moat

How hard GAP's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 9 / 20

Net income has been a median 6.7% of total assets over 10 years.
Pricing power 13 / 20

Gross margin has been a median 38.0%, moving by 2.9 percentage points (standard deviation) across 10 years.
Durability 1 / 20

Operating margin has been a median 7.0%; its worst year was -8.5%.
Cash conversion 11 / 20

Free cash flow was positive in 9 of 10 years, at a median 4.7% of revenue.
Discipline 17 / 20

The diluted share count fell 0.4% over five years; stock-based pay has been a median 0.6% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (51 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from GAP Inc's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to GAP Inc.