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Executing Strasegy PART 2 Cases in Crafting and C-122 for Gap, Inc., 2011-201 EX

ID: 2328318 • Letter: E

Question

Executing Strasegy PART 2 Cases in Crafting and C-122 for Gap, Inc., 2011-201 EXHIBIT1 Financial and Operating Summr cnt, and employee data) (in millions except per share, store employee data) EXHI Operating Results (S in millions) $16.148 $16435 $15,797 39 0% Net sales 36.2% 9.6% 38.3% 12.7% Gross margin 13.3% $ 1,262$ 1.280$ 1,135 $321 Operating margin s 920 s 377 $240 Net income Cash dividends pald $383 Per Share Data (number of shares in milions Basic earnings per share Diluted earmings per share Weighted-average number of 2.35 $ 2.33 s 2.24 s 2.90278 $ 2.74 461 467 S 2.23 435 482 411 shares-basic Weighted-average number of 413 533 Cash dividends declared and paid per share $ 0.88 $ 0.70 $ 0.50 $ 092 Balance Sheet Information ($ in millions) $ 1,928 $ 1,985 S 1,369 Merchandise inventory $ 1,758 5 1,873 $ 1,450 s 1310 s 1,889 Total assets Working capital Total long-term debt, less current s 7.473 $ 7,690$ 7.849 $ 2,083 7,470 $ 1,788 1,615 $ 7.422 1.369 s 2.983$ 3.062 1,332 1,246 $ 1,60 maturities $ 1,506 S 2,755 Stockholders' equity s 2.545 $ 2,894 Other Data ($ and square footage in millions) Cash used for purchases of property and equipment $ 726 $ 670 $ 659 Acquisition of business, net of cash acquired Percentage increase (decrease) in comparable sales $ 129 Number of Company-operated store locations open at year-end 3.275 446 3,721 37.9 3,280 Number of franchise store locations open at yea-end 3,164 3,095 3.036 Number of store locations open at Square footage of Company- 3,709 3,539 operated store space at year-end 3,407 Percentage increase (decrease) in square footage of Company- operated store space at year-end 38.1 37.2 36.9 Number of employees at year-end 141,000 0.8% (0.8)% 136.000 141,000 Source: Gap, Inc 2015 10-4. 137,000 132,000

Explanation / Answer

2015 2015 2013 2012 2011 Net Sales 15797 16435 16148 15551 14549 Gross Profit Percentage 36.20% 38.30% 39.00% 39.40% 36.20% Gross Profit Margin 5719 6295 6298 6127 5267 Net Sales 15797 16435 16148 15551 14549 Net Income 920 1262 1280 1135 833 Net Profit Margin 5.82% 7.68% 7.93% 7.30% 5.73% Current Assets These figures are not provided in exhibit Less: Current Liabilities Working Capital 1450 2083 1985 1788 2181 Current Assets These figures are not provided in exhibit Current Liabilities Current Ratio (CA/CL) Hence this ratio cannot be computed Net Income 920 1262 1280 1135 833 Total Assets 7473 7690 7849 7470 7422 ROA 12.31% 16.41% 16.31% 15.19% 11.22% Net Income 920 1262 1280 1135 833 Working Capital 1450 2083 1985 1788 2181 ROW 63.45% 60.59% 64.48% 63.48% 38.19% Net Income 920 1262 1280 1135 833 Operating capital Debt Liabilities 1310 1332 1369 1246 1606 Stock holders equity 2545 2983 3062 2894 2755 Total operating capital 3855 4315 4431 4140 4361 ROIC 23.87% 29.25% 28.89% 27.42% 19.10%