Long description
Industry average financial ratios are often used to benchmark the ratios of firms that are being analyzed. When this is done we look for deviations from the average that may indicate either a problem or a strength of the subject firm.
| Financial Ratios | Gap, Inc. | Industry Average |
|---|---|---|
| Price-earnings ratio | 10.52 | 21.69 |
| Market-to-book ratio | 3.21 | 13.4 |
| Gross margin | 39.63 percent | 36.98 percent |
| Net profit margin | 5.82 percent | 6.61 percent |
| Operating profit margin | 9.65 percent | 11.88 percent |
| Return on equity | 36.15 percent | 46.22 percent |
| Debt ratio | 65.94 percent | 39.39 percent |
| Current ratio | 1.57 | 1.62 |
| Total assets turnover ratio | 2.11 | 1.87 |
| Inventory turnover ratio | 5.38 | 4.69 |
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