G-III Apparel Group Ltd (GIII)

Days of sales outstanding (DSO)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Receivables turnover		5.50	3.69	6.16	6.36	4.78	3.55	6.27	5.13	4.58	3.01	6.12	4.26	4.16	3.16	9.34	6.95	5.96	3.53	6.70	6.47
DSO	days	66.31	98.87	59.28	57.43	76.34	102.87	58.21	71.18	79.72	121.09	59.65	85.67	87.65	115.42	39.09	52.49	61.29	103.54	54.47	56.42

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.50
= 66.31

The Days Sales Outstanding (DSO) for G-III Apparel Group Ltd has varied over the past several quarters, indicating fluctuations in the company's accounts receivable collection efficiency.

Looking at the trend, the DSO increased notably in the most recent quarter, reaching 98.87 days in October 2023, representing a potential challenge in collecting revenue from customers within a reasonable timeframe. This spike in DSO could signal issues with credit policies, collection procedures, or an increase in the proportion of credit sales.

However, it is positive to note that the DSO decreased significantly in the subsequent quarter, dropping to 59.28 days in July 2023, potentially indicating an improvement in the company's collection efficiency. This reduction suggests that efforts to enhance accounts receivable management may have been successful.

Overall, monitoring the DSO over time can provide insights into G-III Apparel Group Ltd's effectiveness in collecting outstanding receivables promptly and managing credit risk. It is important for the company to maintain a balance between efficient collections and customer relationships to ensure sustainable cash flow and profitability.