The Gap (GPS) Return on Invested Capital (ROIC)

Price: $24.55
Market Cap: $9.21B
Avg Volume: 6.77M
Country: US
Industry: Apparel - Retail
Sector: Consumer Cyclical
Beta: 2.374
52W Range: $9.71-30.75
Website: The Gap

Return on Invested Capital (ROIC) Summary

The Gap's ROIC measures how effectively the company uses its invested capital to generate profits:

  • Annual: 8.91%
  • Quarterly: 2.12%
  • TTM: 8.99%

What is ROIC?

Return on Invested Capital (ROIC) measures how effectively a company uses its capital from debt and equity to generate profits. ROIC is a useful metric for comparing the efficiency of capital allocation between different companies or across time periods within the same company. A higher ROIC indicates a more efficient use of capital.

Related Metrics

Other important metrics to assess The Gap's profitability include:

  • ROE (Return on Equity) - measures the return generated on shareholders' equity:
    • Annual: 25.86%
    • Quarterly: 6.31%
    • TTM: 28.12%
  • ROA (Return on Assets) - measures the return generated on the company's assets:
    • Annual: 7.10%
    • Quarterly: 1.73%
    • TTM: 7.10%

These metrics provide insights into The Gap's profitability and efficiency in using its capital and assets to generate returns. Comparing these ratios with industry benchmarks can offer a deeper understanding of the company's performance.

Annual ROIC

8.91%

Quarterly ROIC

2.12%

TTM ROIC

8.99%

The Gap Historical ROIC

20.45%20.45%17.96%17.96%15.46%15.46%12.97%12.97%10.47%10.47%7.97%7.97%5.48%5.48%2.98%2.98%0.49%0.49%-2.01%-2.01%-4.50%-4.50%ROIC8.91%6.32%-1.06%8.86%-4.50%3.10%17.59%15.93%13.72%17.79%201720172018201820192019202020202021202120222022202320232024202420252025

Historical ROE

41.57%41.57%34.87%34.87%28.17%28.17%21.47%21.47%14.77%14.77%8.07%8.07%1.36%1.36%-5.34%-5.34%-12.04%-12.04%-18.74%-18.74%-25.44%-25.44%ROE25.86%19.34%-9.05%9.40%-25.44%10.59%28.23%26.97%23.28%36.15%201720172018201820192019202020202021202120222022202320232024202420252025

Historical ROA

14.33%14.33%12.41%12.41%10.50%10.50%8.58%8.58%6.67%6.67%4.75%4.75%2.83%2.83%0.92%0.92%-1.00%-1.00%-2.91%-2.91%-4.83%-4.83%ROA7.10%4.55%-1.77%2.01%-4.83%2.57%12.46%10.61%8.88%12.31%201720172018201820192019202020202021202120222022202320232024202420252025

The Gap Historical Profitability Metrics

The table below shows various profitability metrics for each year, with the latest data available for the last fiscal year 2025.

Year ROIC ROE ROA
2025 8.91% 25.86% 7.10%
2024 6.32% 19.34% 4.55%
2023 -1.06% -9.05% -1.77%
2022 8.86% 9.40% 2.01%
2021 -4.50% -25.44% -4.83%
2020 3.10% 10.59% 2.57%
2019 17.59% 28.23% 12.46%
2018 15.93% 26.97% 10.61%
2017 13.72% 23.28% 8.88%
2016 17.79% 36.15% 12.31%

Related Metrics

Explore detailed financial metrics and analysis for GPS.