Overall Fiscal Health Of Gap Inc. Company Overview

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Donald Fisher once tried on pairs of jeans. Fisher could not find a pair of jeans that fit him. Fisher claimed the jeans were too small and that it must be the generation gap, arguing that the people of the generation before him were smaller in size. GAP was the name of his first store and the name of his company that was founded in San Francisco in 1969. Alongside his wife, Doris Fisher, Donald decided that his store would focus on Clothing and appeal. Opening their second store in 1970 and reaching 25 locations in 1973 ‘The GAP’ was well on its way to becoming a clothing and appeal retail giant. In 1974 Gap begin to sell privatized clothing and appeal. In this paper I will discuss the overall fiscal health of GAP Inc. Company overview…show more content…
TJX, J. Crew, Nordstrom, Ross, American Eagle and Abercrombie & Fitch are amongst the list all offering their variety of clothing, appeal and accessories. Outperforming all on the market is TJX, a retail discount company that is dominating the market with estimated revenue of upwards or 30 Billion dollars annual. GAP, however leads the other companies in second place. Horizontal Analysis Horizontal Analysis can be best described as the method of which data is compared side-by-side within two or more periods. “It is intended to show the change in certain accounts from two separate accounting periods.” (Wainwright. 2012). Furthermore the main idea behind Horizontal Analysis is to identify and determine the trend in the finances of the company. In order to conclude to overall fiscal health of a company the horizontal Analysis method is a method which results are beyond reproach. If we are to determine the fiscal health of the GAP with the intent of recommending or not recommending this company to investor we must first obtain the “Income statement,” and the “Balance sheet.” In order to calculate both financial forms we must understand how to calculate to determine the dollar change and the percent change. Dollar Change = Analysis period amount – Base period amount. To calculate for percentage change we divide the dollar charge by the base period
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