G-III Apparel Group Ltd (GIII)

Short-term

Turnover ratios

Inventory turnover for G-III Apparel Group Ltd has been consistent over the past five years, with a range between 4.78 and 5.48. This suggests that the company efficiently manages its inventory by selling and replacing it within a reasonable timeframe.

Receivables turnover fluctuated over the same period, ranging from 4.16 to 5.94. Although there was some variability, the company generally collects its accounts receivable in a timely manner, indicating effective credit and collection practices.

Payables turnover has also varied, with a significant decrease in 2022 followed by an increase in 2023 and 2024. The higher turnover ratio suggests that the company is paying its suppliers more frequently, potentially indicating good relationships with suppliers or efforts to manage cash flow.

Working capital turnover, which measures how effectively the company is using its working capital to generate sales, has shown a decreasing trend over the past five years, indicating that the company may be becoming less efficient in utilizing its working capital to generate revenue. This warrants further investigation into the company's operational efficiency and management of working capital.

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Average number of days

G-III Apparel Group Ltd's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): This ratio measures how long a company takes to sell its inventory. A decreasing trend in DOH indicates that the company is managing its inventory more efficiently. Over the five-year period, G-III Apparel Group Ltd has shown fluctuating DOH, with a slight increase in recent years. This suggests that the company may be carrying more inventory or facing challenges in selling it quickly.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for a company to collect on its sales. A decreasing DSO is generally considered favorable as it indicates faster receipt of cash from customers. The DSO for G-III Apparel Group Ltd has fluctuated over the years, with a downward trend in the most recent year. This improvement is a positive sign, indicating the company's ability to collect payments more quickly.

3. Number of Days of Payables: This ratio measures how long a company takes to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its bills, which can indicate favorable cash flow management. G-III Apparel Group Ltd has shown fluctuations in this ratio over the past five years, with a notable increase in the most recent year. This increase may indicate that the company is taking more time to pay its suppliers, potentially benefiting from extended payment terms.

In summary, while G-III Apparel Group Ltd has shown mixed results in its activity ratios over the past five years, the recent trends indicate improvements in inventory management (in terms of DOH) and collection efficiency (in terms of DSO). The increase in the number of days of payables may also suggest potential benefits to cash flow management. However, further analysis is necessary to understand the underlying reasons for these trends and their impact on the company's overall operational efficiency.

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Long-term

Based on the provided long-term activity ratios for G-III Apparel Group Ltd, we can observe the following trends:

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. G-III Apparel Group Ltd's fixed asset turnover has fluctuated over the past five years, ranging from 35.89 to 60.05. A high fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales. However, the decreasing trend in the fixed asset turnover ratio from 2022 to 2024 may suggest a potential decline in the efficiency of utilizing fixed assets to generate revenue.

2. Total Asset Turnover: The total asset turnover ratio reflects how well a company is utilizing all its assets to generate revenue. G-III Apparel Group Ltd's total asset turnover has varied over the past five years, ranging from 0.84 to 1.23. A higher total asset turnover ratio indicates better efficiency in generating sales from all assets. The fluctuation in the total asset turnover ratio suggests potential changes in the company's asset utilization efficiency over the years.

In summary, G-III Apparel Group Ltd has shown varying efficiency in utilizing its fixed assets and total assets to generate revenue over the past five years. It is essential for the company to consistently monitor and improve these turnover ratios to ensure optimal asset utilization and sustainable revenue generation in the long term.