G-III Apparel Group Ltd (GIII)

Working capital turnover

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Revenue US$ in thousands 3,180,800 3,098,240 3,226,730 2,766,540 2,055,150
Total current assets US$ in thousands 1,335,350 1,660,320 1,652,500 1,652,860 1,344,040
Total current liabilities US$ in thousands 510,490 493,628 579,069 510,805 402,002
Working capital turnover 3.86 2.66 3.01 2.42 2.18

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,180,800K ÷ ($1,335,350K – $510,490K)
= 3.86

The working capital turnover ratio of G-III Apparel Group Ltd shows an improving trend over the years, reflecting the company's efficiency in managing its working capital.

The ratio increased from 2.18 in January 31, 2021, to 3.86 in January 31, 2025. This indicates that the company generates $3.86 in net sales revenue for every dollar of working capital invested.

The steady improvement in the working capital turnover ratio suggests that G-III Apparel Group Ltd has been effectively utilizing its working capital to support its sales growth. This efficiency in working capital management can lead to enhanced profitability and liquidity for the company, contributing to its overall financial health.