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Effective Tax Rate for Gap Inc

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GAP: Gap Inc

The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athl...

19.13 USD
Price
USD
Fair Value
Upside
16.99 - 30.75
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on Gap Inc's Effective Tax Rate:

Jan 2017Feb 2019Jan 2021Jan 2023Feb 2025-40.0%-20.0%0.0%20.0%40.0%

Performance Summary
  • Gap's latest twelve months effective tax rate is 25.8%
  • Gap's effective tax rate for fiscal years ending January 2021 to 2025 averaged 10.1%.
  • Gap's operated at median effective tax rate of 20.7% from fiscal years ending January 2021 to 2025.
  • Looking back at the last 5 years, Gap's effective tax rate peaked in January 2021 at 39.7%.
  • Gap's effective tax rate hit its 5-year low in January 2023 of -45.3%.
  • Gap's effective tax rate decreased in 2022 (20.7%, -47.7%) and 2023 (-45.3%, -318.5%) and increased in 2021 (39.7%, +18.3%), 2024 (9.7%, -121.4%), and 2025 (25.8%, +165.3%).

How does Gap's Effective Tax Rate benchmark against competitors?

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We've identified the following companies as similar to Gap Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Effective Tax Rate

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effect_tax_rate
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number
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text
Format
current
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Periods Supported
Free
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Metrics similar to Effective Tax Rate in the efficiency category include:

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Effective Tax Rate

A ratio that measures the GAAP tax rate applicable to the earnings after all expenses have been deducted by the business.

Definition of Effective Tax Rate

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The Effective Tax Rate is calculated as follows:

Provision For Taxes
(/) Earnings Before Taxes
(=) Effective Tax Rate

The effective tax rate represents the percentage of Earnings Before Tax paid out in taxes.

Effective Tax Rate for Gap is calculated as follows:

Provision For Taxes [ $293 M ]
(/) Earnings Before Taxes [ $1.137 B ]
(=) Effective Tax Rate [ 25.8% ]

The tables below summarizes the trend in Gap’s effective tax rate over the last five years:

Fiscal Year Dividends Earnings Before Taxes Effective Tax Rate
2021-01-30 -$437 M -$1.102 B 39.7%
2022-01-29 $67 M $323 M 20.7%
2023-01-28 $63 M -$139 M −45.3%
2024-02-03 $54 M $556 M 9.7%
2025-02-01 $293 M $1.137 B 25.8%

Read more about ebt, incl. unusual items and income tax expense


Click the link below to download a spreadsheet with an example Effective Tax Rate calculation for Gap Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-47.1%-12.1%22.9%76.3%0100200

The chart above depicts the distribution of effective tax rate for companies operating in the Consumer Discretionary sector in the Developed economic region. Over 3,075 companies were considered in this analysis, and 2,187 had meaningful values. The average effective tax rate of companies in the sector is 16.9% with a standard deviation of 18.3%.

Gap Inc's Effective Tax Rate of 25.8% ranks in the 66.4% percentile for the sector. The following table provides additional summary stats:

Effective Tax Rate In The Consumer Discretionary Sector
Economic Risk RegionDeveloped
Total Constituents3,080
Included Constituents2,187
Min-44.2%
Max73.3%
Median19.7%
Mean16.9%
Standard Deviation18.3%

You can find companies with similar effective tax rate using this stock screener.

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