G-III Apparel Group Ltd (GIII)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,893,069	1,876,356	1,853,394	1,867,621	1,864,787	1,946,476	2,046,451	2,039,661	2,125,591	2,048,531	1,982,741	1,896,626	1,778,349	1,621,175	1,482,099	1,354,415	1,310,704	1,475,584	1,676,162	1,925,766
Inventory	US$ in thousands	478,086	532,463	610,492	479,671	520,426	591,530	804,858	30,300	709,345	900,987	1,040,810	550,059	512,155	448,991	499,337	346,668	416,503	461,769	574,767	500,410
Inventory turnover		3.96	3.52	3.04	3.89	3.58	3.29	2.54	67.32	3.00	2.27	1.90	3.45	3.47	3.61	2.97	3.91	3.15	3.20	2.92	3.85

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,893,069K ÷ $478,086K
= 3.96

The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times during a period the company sells and replaces its inventory. For G-III Apparel Group Ltd, the inventory turnover has fluctuated over the years based on the data provided.

From April 2020 to July 2020, the inventory turnover decreased from 3.85 to 2.92, indicating a decrease in the efficiency of selling and replacing inventory. However, it increased to 3.20 by October 2020, showing a recovery in managing inventory more effectively.

From January 2021 to April 2021, there was a slight decrease in inventory turnover from 3.15 to 3.91, indicating an increase in the efficiency of managing inventory. Subsequently, the turnover decreased to 2.97 by July 2021 before increasing again to 3.61 by October 2021.

The trend continued with fluctuations in the inventory turnover ratio, showing some variability in how quickly inventory was sold and replaced. Notably, there was a significant spike in the inventory turnover ratio to 67.32 in April 2023, which could be an outlier or a data error as it is inconsistent with the usual range of turnover ratios.

Overall, the inventory turnover ratio for G-III Apparel Group Ltd has shown some variability but generally remains within a range that indicates a moderate level of efficiency in managing inventory. Investors and analysts may want to further investigate the unusual spike in the inventory turnover ratio in April 2023 to understand the underlying reasons behind it.