G-III Apparel Group Ltd (GIII)

Receivables 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
Receivables	US$ in thousands	562,363	674,963	605,512	492,698	530,137
Receivables turnover		5.50	4.78	4.58	4.16	5.94

January 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,092,530K ÷ $562,363K
= 5.50

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. G-III Apparel Group Ltd's receivables turnover has shown fluctuations over the past five years.

In the most recent fiscal year ending January 31, 2024, the company had a receivables turnover of 5.50 times. This indicates that G-III Apparel Group Ltd collected its accounts receivable approximately 5.50 times during the year. It suggests that the company was able to convert its accounts receivable into cash relatively quickly compared to the previous years.

Compared to the previous year, the receivables turnover ratio increased from 4.78 to 5.50, indicating an improvement in the company's ability to collect its receivables. This could be a positive sign of efficient credit management and effective collection procedures.

Looking back further, the receivables turnover ratio has fluctuated over the past five years. It was 4.58 in 2022, 4.16 in 2021, and 5.94 in 2020. The variations in the ratio may suggest changes in the company's credit policies, customer payment behavior, or overall economic conditions impacting collections.

Overall, the upward trend in the receivables turnover ratio over the past two years for G-III Apparel Group Ltd indicates an improvement in the company's efficiency in collecting its accounts receivable, which is a positive indicator of financial health and effective working capital management.