G-III Apparel Group Ltd (GIII)

Working capital 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
Total current assets	US$ in thousands	1,660,320	1,652,500	1,652,860	1,344,040	1,368,690
Total current liabilities	US$ in thousands	493,628	579,069	510,805	402,002	613,960
Working capital turnover		2.65	3.01	2.43	2.17	4.17

January 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,092,530K ÷ ($1,660,320K – $493,628K)
= 2.65

The working capital turnover ratio of G-III Apparel Group Ltd has varied over the past five years. In the latest fiscal year ending on January 31, 2024, the working capital turnover was 2.65, indicating that the company generated $2.65 of sales for every dollar of working capital invested. This ratio was lower than the previous year's figure of 3.01, suggesting a decrease in efficiency in utilizing working capital to generate sales.

Comparing to the fiscal year ending January 31, 2022, where the working capital turnover was 2.43, the company showed an improvement in efficiency in the latest year. However, when compared to the fiscal years ending on January 31, 2021, and January 31, 2020, where the ratios were 2.17 and 4.17, respectively, we observe fluctuations in the efficiency of working capital utilization over the years.

Overall, the trend in working capital turnover reflects variations in how effectively G-III Apparel Group Ltd is utilizing its working capital to generate sales. An upward trend indicates improved efficiency, while a downward trend suggests a decline in efficiency. It is essential for the company to carefully manage its working capital to ensure optimal utilization and maximize profitability.