1 / 19

Gap Inc.

Gap Inc. The Valuation Project -Mod 10 : Detailed Analysis of Financial Statements Sherry Xu ( netID : jxu6). Table of Contents. 1. Company Profile 2. Detailed Analysis of Financial Statements 2.1 Balance Sheet 2.2 Income Statement. 1. Company profile. Industry : Apparel stores

gus
Télécharger la présentation

Gap Inc.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GapInc. TheValuationProject-Mod10:DetailedAnalysisofFinancialStatements SherryXu(netID:jxu6)

  2. Table of Contents • 1. Company Profile • 2. Detailed Analysis of Financial Statements • 2.1 Balance Sheet • 2.2 Income Statement

  3. 1. Companyprofile Industry:Apparelstores Global retailer offering apparel, accessories, and personal care products for men, women, children, and babies Comparablecompanies:Abercrombie(ANF),AmericanEagle(AEO),Aeropostle(ARO) Foundedin1969inSanFrancisco;incorporatedinDelaware Brands:Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix #ofcompany-operatedstores: 3,095; # of franchise stores: 312 (As of FY2012 balance sheet date)

  4. 2.1Balance Sheet:Assets

  5. 2.1 Balance Sheet:Liabilities & Equity

  6. 2.1 Balance Sheet:Other current assets • Note 2 • Useful to differentiate enterprise activities from financing activities

  7. 2.1 Balance Sheet:PPE • Note 2 • Useful to estimate depreciation expense

  8. 2.1 Balance Sheet:Other long-term assets • Note 2 • Useful to differentiate enterprise activities from financing activities

  9. 2.1 Balance Sheet:Goodwill and other intangible asset • Note 4 • Acquired Athleta in 2008 and Intermix in 2012 • Useful to estimate goodwill and other intangible asset

  10. 2.1 Balance Sheet:Accrued expenses and other current liabilities • Note 2 • Useful to differentiate enterprise activities from financing activities

  11. 2.1 Balance Sheet:Long-term debt • Note 5 • Detailedinformationaboutthedebtportfolio • Usefultoestimatelong-termdebt,capitalstructureandcostofcapital

  12. 2.1 Balance Sheet:Lease incentives and other long-term liabilities • Note 2 • Useful to differentiate enterprise activities to financing activities

  13. 2.1 Balance Sheet:Income tax • Note 13

  14. 2.2 IncomeStatement

  15. 2.2 IncomeStatement: Net sales-Segment information • Note 17.SegmentInformation • Usefultoforecastnetsales • Limitedsalesgrowthin“old”brands,robustgrowthinnewlyacquired/launchedbrands.

  16. 2.2IncomeStatement:COGS, operating expense and margin • MD&A • Useful to forecast profit margin • Both gross and net profit margin increased

  17. 2.2IncomeStatement:Tax rate • MD&A • Ideal outcome: estimate the amount of tax that would have been avoided has the firm not had any financial expense. • Desired tax rate is marginal tax rate on the financing expense.However, it is not clear that the items of financial expenses are being taxed at the effective tax rate. • Thus continue to use the 37% assumed statutory rate.

  18. Questions?

  19. Thank you! Sherry Xu (netID: jxu6)

More Related