G-III Apparel Group Ltd (GIII)

Payables 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
Payables	US$ in thousands	182,531	169,508	236,921	139,183	204,786
Payables turnover		15.64	20.01	10.57	14.53	14.54

January 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,853,940K ÷ $182,531K
= 15.64

The payables turnover of G-III Apparel Group Ltd has fluctuated over the past five years, ranging from a low of 10.57 in January 2022 to a high of 20.01 in January 2023. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period.

A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be a positive sign of efficient working capital management. Conversely, a lower ratio may suggest that the company is taking longer to pay off its suppliers, potentially straining relationships or missing out on potential discounts for prompt payment.

In the case of G-III Apparel Group Ltd, the ratio has generally been above 14 over the past five years, indicating a relatively efficient management of accounts payable. However, the fluctuations in the ratio from year to year suggest potential changes in the company's payment practices or its relationships with suppliers. Further analysis of the company's financial statements and industry benchmarks would provide more insight into the effectiveness of its payables management.