The Gap, Inc. cash flow to debt ratio of 23.04% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

The Gap, Inc.'s free cash flow has decreased 20.79% from $1.04B last year to $823.00M, signaling decreasing performance

The Gap, Inc.'s debt to equity ratio is 1.45, which means that the company's assets are unhealthy financed, signaling financial risk.

The Gap, Inc.'s debt has decreased relative to shareholder equity from 1.68 last year to 1.45 today, signaling strengthened financials

The Gap, Inc. has a net debt to EBITDA ratio of 1.58x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

The Gap, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

The Gap, Inc.'s profit margin was 5.59% last year and is 8.14% this year, signaling increasing performance

The Gap, Inc.'s short-term assets of $5.78B exceed its short-term liabilities of $3.30B

The Gap, Inc.'s return on assets of 9.70% is higher than the 5.00% threshold, indicating efficient asset utilization

The Gap, Inc.'s return on equity of 33.13%, is higher than 15.00%, indicating good performance

The Gap, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

The Gap, Inc. had positive net income in 4 out of 5 years, indicating stable and consistent earnings

The Gap, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

The Gap, Inc. has a free cash flow yield of 10.48%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

The Gap, Inc.'s yearly earnings has decreased 3.32% since last year from $844.00M to $816.00M, signaling decreasing performance

The Gap, Inc.'s yearly revenue has increased 1.86% since last year from $15.09B to $15.37B, signaling increasing performance

ROIC 12.03% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

The Gap, Inc.'s 3-year revenue CAGR of -0.54% is negative, indicating declining revenue over the past 3 years

The Gap, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

The Gap, Inc. had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

The Gap, Inc. has insufficient data to evaluate this check.

The Gap, Inc. has an earnings yield of 15.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

The Gap, Inc. is overvalued relative to its fair value price of 0.00 based on Base EBITDA Valuation model

The Gap, Inc. has an EV/EBITDA ratio of 6.34x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

The Gap, Inc. is overvalued relative to its fair value price of 20.48 based on Base Earnings Fair Value model

The Gap, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

The Gap, Inc. has a price-to-book ratio of 1.99x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

The Gap, Inc. has a price-to-sales ratio of 0.51x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue