G-III Apparel Group Ltd (GIII)

Working capital turnover

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Revenue (ttm) US$ in thousands 3,095,622 3,186,787 3,197,977 3,143,460 3,227,155 3,126,362 3,063,452 2,941,289 2,772,283 2,545,116 2,356,287 2,170,418 2,051,682 2,280,057 2,581,896 2,928,576 3,157,069 3,169,237 3,113,817 3,094,623
Total current assets US$ in thousands 1,660,320 1,713,140 1,602,680 1,491,760 1,652,500 1,984,540 1,765,410 1,616,580 1,652,860 1,627,460 1,461,830 1,324,120 1,344,040 1,371,810 1,173,720 1,614,050 1,368,690 1,685,730 1,452,220 1,171,550
Total current liabilities US$ in thousands 493,628 602,344 624,012 508,103 579,069 643,178 769,386 451,984 510,805 547,002 485,541 347,757 402,002 482,084 472,420 406,534 613,960 713,249 697,228 540,231
Working capital turnover 2.65 2.87 3.27 3.20 3.01 2.33 3.08 2.53 2.43 2.36 2.41 2.22 2.18 2.56 3.68 2.43 4.18 3.26 4.12 4.90

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,095,622K ÷ ($1,660,320K – $493,628K)
= 2.65

The working capital turnover ratio for G-III Apparel Group Ltd has shown fluctuations over time, ranging from a low of 2.18 to a high of 4.90. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. An increasing trend in the working capital turnover ratio is generally positive as it indicates the company is generating more sales revenue for every dollar of working capital invested.

In the most recent period, as of January 31, 2024, the working capital turnover ratio stands at 2.65, which is lower than the previous period's ratio of 2.87. This suggests a slight decrease in the efficiency of working capital utilization to generate sales revenue. However, it is important to consider that working capital turnover ratios can vary seasonally or due to specific operational factors within the company.

Overall, it is essential for G-III Apparel Group Ltd to monitor and manage its working capital effectively to ensure optimal performance and profitability. Periodic analysis of the working capital turnover ratio helps in evaluating the company's operational efficiency and liquidity management.