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.