G-III Apparel Group Ltd (GIII)

Inventory turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	2,853,940	3,391,010	2,505,110	2,022,660	2,977,220
Inventory	US$ in thousands	520,426	709,345	512,155	416,503	551,918
Inventory turnover		5.48	4.78	4.89	4.86	5.39

January 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,853,940K ÷ $520,426K
= 5.48

The inventory turnover ratio for G-III Apparel Group Ltd has shown some fluctuation over the past five years. In the latest fiscal year ending on January 31, 2024, the company achieved an inventory turnover of 5.48 times. This represents an increase from the previous year but was slightly lower compared to the levels seen in the years prior.

Overall, the inventory turnover ratio indicates how efficiently the company is managing its inventory levels. A higher turnover ratio suggests that the company is selling its inventory more frequently within a given period, which can lead to lower holding costs and reduced risk of obsolete inventory. On the other hand, a lower turnover ratio may indicate potential issues such as overstocking, slow sales, or ineffective inventory management.

Given the slight increase in inventory turnover in the most recent year, it appears that G-III Apparel Group Ltd was able to improve its inventory management efficiency. However, further analysis and comparison with industry benchmarks would be necessary to assess the company's performance in this aspect more comprehensively.