Gap, Inc. Financial Analysis Essay

2903 Words Apr 9th, 2013 12 Pages
The GAP, Inc.
The Fiscal year Ended January 28, 2012

A. INTRODUCTION AND OVERVIEW 1. Financial Statements Included in the Annual Report

2.1. Consolidated Statements of Cash Flow 2. Major Competitors of the GAP, Inc.
American Eagle Outfitters, Inc., J. Crew Group, Inc., and the TJX Companies, Inc. can be shown as the major competitors for the GAP, Inc. Based on the data given in annual reports of the companies, gross margin % for GAP, Inc. is 36%, while American Eagle Outfitters has 36%, J. Grew Group, Inc. has 40%, and TJX has 32% gross margin. Stock price on November 2, 2012 is $35.11 for the GAP, Inc., while it is $21.05 for American Eagle Outfitters, Inc., $43.55 for J. Crew Group, Inc., and $41.52 for the TJX
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7. The price per share of the common stock
The price per share of the common stock as of the most recent fiscal year-end date, which is January 28, 2012, is $18.69. On the other hand, the price per share on November 3, 2012, which is the day we can see the close price before the report date, is $35.11.

8. Generated Cash
The company generated $1.363 billion net cash by operating activities during fiscal year 2011. The amount of generated cash generated during fiscal year 2011 decreased $381 million comparing the amount generated during fiscal year 2010. Also, net cash provided by operating activities during fiscal year 2010 decreased $184 million compared with fiscal year 2009.
The cash outflows for investing activities of the company are primarily for capital expenditures and purchases of investments, whereas cash inflows are primarily provided from maturities of short-term investments. The amount of net cash used for investing activities is $454 million during the fiscal year 2011, $429 million during the fiscal year 2010 and $537 million during the fiscal year 2009, while maturities of short-term investments are $150 million, $600 million, and $125 million in fiscal year 2011, 2010 and 2009.
The cash outflows

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