Tuesday, February 19, 2019
Financial Position of Gap Inc.
The gross margins have alike Increased for fiscal 2009 here It was 40. 32 per centum as compared to 2008 of 37. 5 share and 2007 of 36. 1 1 part. The operating margins also continue to call down for fiscal 2009 severance had an operating margin on 12. 8 percent as compared to 10. 7 percent from 2008 and 8. 3 percent In 2007. orifice has also been able to grow Its cash not only all(prenominal) yr but also 29. 4 percent of Its total assets as compared to 2008 where cash was only at 1. 7 billion and 22. 6 percent of total assets.Gap also has worked to reduce their debt down to ere by 2010 and they have do so, currently they have no long-term debt and 2. 3 billion in cash. The 2009 current ratio for Gap is 2. 19 as compared to 1. 88 in 2008, and 1. 67 in 2007. Gap is increasing their liquidity from year to year while net sales are still decreasing. Gaps merchandise stock list has also seen a decrease not only in revalue but also as a percentage of total assets 2007 Gap had m erchandise inventory valued TTL . 57 billion and that represented 20. Percent. armory was 1. 50 billion and represented 19. Percent of total assets in 2008. In 2009 the merchandise inventory was 1. 47 billion and represented 18. 5 percent of total assets. The operating expenses for Gap have maintained constant from 2005-2009 when smell at them as a percentage of sales. The difference in percentage from year to year changed only by a few tenths of percentage. Income from trading operations however has increased since 2006 where it had fallen 29 percent from 2005.Operating expenses include the undermentioned I payroll and related benefits (for our store operations, field management, striation centers, and corporeal functions) I marketing I general and administrative expenses cost to send off and develop our products I merchandise handling and receiving In dilutions centers and stores I diffusion center general and administrative expenses I rent, business, depreciation, and amor tization for corporate facilities and other(a) expense (income). I gross margins previously stated. Gap had cost of goods interchange at 59. 68 percent of sales in 2009 compared to 62. Percent in 2008 and 63. 89 percent in 2007. Gap has been working to drive their costs down and thus far have been successful. Cost of goods sold and occupancy expenses include the following I the cost of merchandise I I inventory shortage and valuation adjustments I I freight charges I I costs associated with our sourcing operations, including payroll and related benefits