G-III Apparel Group Ltd (GIII)

Fixed asset turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	3,092,530	3,227,190	2,774,520	2,048,160	3,150,670
Property, plant and equipment	US$ in thousands	55,084	53,742	48,805	57,064	76,023
Fixed asset turnover		56.14	60.05	56.85	35.89	41.44

January 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,092,530K ÷ $55,084K
= 56.14

The fixed asset turnover ratio for G-III Apparel Group Ltd has fluctuated over the past five years. It decreased from 41.44 in January 2020 to 35.89 in January 2021, indicating a decrease in efficiency in generating sales from fixed assets. However, there was an improvement in the following years, reaching 56.85 in January 2022, 60.05 in January 2023, and 56.14 in January 2024.

A high fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate revenue. G-III Apparel Group Ltd's ratios of above 50 in the recent years indicate that the company has been able to generate significant sales relative to its investment in fixed assets. This may suggest efficient management of its fixed assets to drive revenue growth.

Overall, the trend in G-III Apparel Group Ltd's fixed asset turnover ratio shows variability but generally indicates efficient use of fixed assets in generating revenue, especially in the more recent years.