Gap Inc Financial Statement Analysis LR

Founded in 1969 by Donald Fisher and Doris Fisher, Gap Inc is largest clothing and accessories retailer in America. The clothing store began in San Francisco California, where the Fishers opened their first shop because they had been frustrated with the poor service and clothing styles offered at other retailers. The store was named the gap because it supplied clothing to teenagers and college students, the "generation gap" between children and adults.

J.Crew as an iconic brand targeting young working professional by focusing on preppy and classy look failed in identifying brand focus. Also, their business model is performing poorly in the fast-fashion industry compare to traditional competitors, with its high prices, diverging quality, and undesirable brand image. Hence, the brand perception by customers has changed and many of them prefer to purchase the discounted products rather than full-priced items.

The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001).

Debt ratio percentages increased for Company G from 28.34% to 29.94%. Industry quartile is 30, 45 and 66 percent, putting Company G below average. Debt Ratio represents strength for Company G.

Cash flow from operations to total liabilities ratio for 2010 is 15.1% and for 2009 is 11.7%. Financially healthy company has cash flow from operations to total liabilities ratio of 20% or more. Dollar General has a high long-term liquidity risk. Interest coverage Ratio for 2010 is 3.6 and for 2009 is 1.6. A high fluctuation makes the company risky, although it exceeded a 3.0 benchmark in 2010 it should show this stability over time.

Old Navy is a brand owned by Gap, Inc. As a whole, Gap’s purpose is “to make it easy for you to express your personal style throughout your life” (www.gapinc.com). The culture of Gap, Inc is governed by their key values: integrity, respect, open-mindedness, quality and balance. One way Gap achieves their purpose is through one of their four brands, Old Navy. The brand is known for offering on-trend apparel and accessories at great value. Old Navy's mission is to

By 30 June 2009, the company currently has 123 stores in Australia and New Zealand and management has

J.Crew began in 1947 as a low priced clothing company that sold its merchandise door-to-door. It was originally called Popular Club but the name was eventually changed to J.Crew to better suit its preppy image. In 1983 the company released its first catalog in an effort to mimic the success of like Lands’ End and L.L. Bean. People fell in love with the company’s preppy aesthetic that was much more affordable than designers like Ralph Lauren. Within the decade, the company grew its customer base exponentially. Their sales increased from $3 Million to $100 Million in less than 10 years. In 1989 the company expanded into retail stores with their first brick-and-mortar location in South Street Seaport in New York.

In addition, the company distributes their products through a network of 42 owned and leased distribution centers. As of December 29, 2012, they distributed their products via 39 distribution centers in the United States and three in Canada. The company owns four and lease 38 of these distribution centers. Furthermore,

J.Crew group is an American multi brand, multi channel, and specialty. The company offers an assortment of women’s, men’s and children’s apparel and accessories as well as the j.crew real estate. The j. crew and madewell trademarks and variations thereon like the crewcuts, are registered or are subject to awaiting trademark applications with the United States Patent and Trademark Office and with the registries of many foreign countries. They believe their trademarks have significant value and they intend to continue to vigorously protect them against infringement. Furthermore, they licensed their j. crew trademark and know to Itochu Corporation in Japan for which they received royalty fees based on a percentage of sales of property or properties. And they have the licensing revenue on the year of 2006, 2007 and 2008. And they established many branches all over the world such as Atlantic City, New Jersey,

The company began in 1971 in Seattle, Washington with one retail store and it grew to over 2,600 stores in 13 countries by the early 2000’s (Schultz, 2011). They now have operations and retails stores in more than 50 countries around the world (Harrer, 2011).

Aggreko PLC (Aggreko) provides temporary powerand temperature control solutions . The company's lease and provides its services on a rental basis . Renting its services power generators , temperature control , humidity control , oil-free air luggage.

The brand expanded into Canada after receiving success in America, and later opened their first store outside of America on December 2008 in London. They have expanded from one location, to now having five hundred and seventy eight locations across the globe.

Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.

Gap Inc. is a large company in the clothing business with over 3,300 stores worldwide. As one of the World’s Most Ethical Companies in 2012 for the sixth straight year, it might be interesting to investigate the ethical issues that have risen in the past years (Gap Inc., 2013a).