The gross margins have also Increased for fiscal 2009 here It was 40. 32 percent as compared to 2008 of 37.
Don't use plagiarized sources. Get Your Custom Essay on
Financial Position of Gap Inc.
just from $13,9 / page
Gap also has worked to reduce their debt down to ere by 2010 and they have done 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 inventory has also seen a decrease not only in value but also as a percentage of total assets 2007 Gap had merchandise inventory valued TTL . 57 billion and that represented 20. Percent. Inventory 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 looking 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 operations however has increased since 2006 where it had fallen 29 percent from 2005.
Operating expenses include the following: I payroll and related benefits (for our store operations, field management, striation centers, and corporate functions); I marketing I general and administrative expenses; costs to design and develop our products; I merchandise handling and receiving In dilutions centers and stores; I distribution center general and administrative expenses; I rent, occupancy, depreciation, and amortization for corporate facilities: and other expense (income). I gross margins previously stated. Gap had cost of goods sold 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
Remember. This is just a sample.
You can get your custom paper from our expert writers