For this assignment, address all items listed below for the GAP, Inc. Based on your findings in parts 1–3 below, comment on the Gap’s financial position in FY2020, which ended on January 30, 2021. The Gap’s financial statements are available as form 10-K at sec.gov.
Compute three financial ratios of the firm in each category (liquidity, solvency, asset management, and profitability) at the end of FY2020. The financial ratios you need to calculate are as follows:
Liquidity: current ratio, quick ratio, and cash ration
Solvency (leverage): long-term debt ratio, debt to equity ratio, and times interest earned ratio
Asset management: total assets turnover, inventory turnover, and receivables turnover
Profitability: profit margin, ROA, and ROE
Compare the ratios you computed in part a) with the industry average at the end of the same fiscal year. To compute the industry average, pick the firm’s closest five competitors, compute the ratios you used in part a) for each competitor, and then average them. A list of the firm’s competitors can be found either in the firm’s 10-K report or in the Mergent Online database that you can find in the Pace online library.
Compare the Gap’s ratios you computed in part a) with those of the previous FY.
The assignment will be graded on three criteria: 1) the accuracy of your calculations and explanations; 2) use of analytics, numbers, graphs, etc.; and 3) the organization and clarity of your written report.
Note on how to present your work:
Report and explain all your findings in a Word document. Summarize the ratios you calculate in a table. Show all your calculations in Excel as supporting evidence. Each numerical answer reported in your Word document should have a reference to where in the Excel spreadsheet I can find your calculations. Use only one Excel spreadsheet, but different tabs (if necessary) for your calculations. The report should use a 12 point font, be double spaced, and not more than five pages long (including graphs, tables, references, and appendices).
Cite your sources (financial reports and others) in the Word document, and specify the page number where you found the information.
Choose an academic level, add pages, and the paper type you want.
To reduce the cost of our essay writing services, select the lengthier deadline.
We can't believe we just said that to you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments