G-III Apparel Group Ltd (GIII)

Working capital turnover

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Revenue (ttm) US$ in thousands 3,160,677 3,085,924 3,086,394 3,101,400 3,098,242 3,187,888 3,199,078 3,144,561 3,226,729 3,120,456 3,057,546 2,935,383 2,766,536 2,544,623 2,355,794 2,169,925 2,055,146 2,283,521 2,585,360 2,932,040
Total current assets US$ in thousands 1,335,350 1,581,220 1,594,060 1,548,510 1,657,770 788,921 1,602,680 42,000 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
Total current liabilities US$ in thousands 510,490 600,321 546,405 408,065 493,628 602,344 624,012 16,800 579,069 643,178 769,386 451,984 510,805 547,002 485,541 347,757 402,002 482,084 472,420 406,534
Working capital turnover 3.83 3.15 2.95 2.72 2.66 17.09 3.27 124.78 3.01 2.33 3.07 2.52 2.42 2.36 2.41 2.22 2.18 2.57 3.69 2.43

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,160,677K ÷ ($1,335,350K – $510,490K)
= 3.83

The working capital turnover ratio of G-III Apparel Group Ltd has exhibited some fluctuations over the periods provided. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

Initially, in April 2020, the working capital turnover was 2.43, showing that the company generated $2.43 in revenue for every dollar of working capital. It increased to 3.69 in July 2020, signaling an improvement in efficiency. However, the ratio dropped to 2.18 in January 2021, indicating a decrease in the company's ability to generate sales from its working capital.

Throughout the following quarters, the ratio fluctuated within a range, with values such as 2.22, 2.41, and 2.36 indicating modest fluctuations in efficiency. Notably, there was a significant spike to 124.78 in April 2023, which is likely an anomaly or data error given that it deviates significantly from the other values.

In the most recent periods like January 2025, the working capital turnover ratio improved to 3.83, suggesting that the company is utilizing its working capital more effectively to drive sales. Overall, the trend in the working capital turnover ratio for G-III Apparel Group Ltd shows some variability, with periods of improvement and minor setbacks, pointing to the company's changing efficiency in converting working capital into sales.