Question

Evaluate Gap Inc.s financial performance. Include a complete financial analysis (using case materials only). Compare Gaps performance to Inditex and Abercrombie & Fitch. Use tables below GAP LONGITUDINAL ANALYSIS RATIO Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Assets Return on Equity Current ratio Debt-to-Assets Debt-to-Equity 2015 2014 2013 2012 2011 CROSS-SECTIONAL ANALYSIS RATIO 2015 2014 2013 GAP Gross Profit Margin Operating Profit Margin Net Profit Margin INDITEX Gross Profit Margin Operating Profit Margin Net Profit Margin A & F Gross Profit Margin Operating Profit Margin Net Profit Margin

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Answer #1
CROSS SECTIONAL ANALYSIS
RATIO 2015 2014 2013
GAP
Gross profit Margin $    5,718.51 $    6,294.61 $ 6,297.72
Operating Profit Margin $    1,516.51 $    2,087.25 $ 2,147.68
Net Profit Margin $        920.00 $    1,262.00 $ 1,280.00
INDITEX
Gross profit Margin $ 13,661.00 $ 11,942.00 $ 8,781.00
Operating Profit Margin $    4,156.00 $    3,614.00 $ 2,702.00
Net Profit Margin $    3,257.00 $    2,836.00 $ 2,108.00
A & F
Gross profit Margin $    2,157.00 $    2,314.00 $ 2,575.00
Operating Profit Margin $          73.00 $        114.00 $        81.00
Net Profit Margin $          36.00 $          52.00 $        55.00
Notes
Working
GP Margin= GP*!00/REvenue
OP Margin= OP* 100/Revenue
NP Margin= NP*100/Revenue
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