Determine overall percentage decrease in total assets

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Reference no: EM1352741

Part: 1

The Following information was reported by Gap, Inc in its 2006 annual report.

2006 2005 2004 2003 2002

Total assets $8,544 $8,821 $10,048 $10,713 $10,283
(In Millions)

Working Capital $2,757 3,297 $ 4,062 $4,156 $2,972

Current ratio 2.21:1 2.70:1 2.81:1 2.63:1 .2.08:1

Deb to total assets ratio .39:1 .38:1 .51:1 .57:1 .66:1

Earnings per share $0.94 $1.26 $1.29 $1.15 $0.55

(A) Determine the overall percentage decrease in Gap's total assets from 2002 to 2006.
What was the average decrease per year?

(B) Comment on the change in Gap's liquidity. Does working capital or the current ratio appear to provide a better indication of Gap's liquidity? What might explain the change in Gaps liquidity during this period?

(D) Comment on the change in Gap's profitability during this period. How might this affect your predication about Gap's future profitability?

Reference no: EM1352741

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