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.
Peer comparison
Jan 31, 2024