G-III Apparel Group Ltd (GIII)

Liquidity ratios

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Current ratio 2.62 3.36 2.85 3.24 3.34
Quick ratio 0.36 1.03 0.33 0.91 1.03
Cash ratio 0.36 1.03 0.33 0.91 1.03

The current ratio of G-III Apparel Group Ltd has shown some fluctuation over the years, starting at 3.34 in January 31, 2021, decreasing to 2.85 in January 31, 2023, and then increasing to 3.36 in January 31, 2024, before dropping to 2.62 in January 31, 2025. Overall, the company has managed to maintain a current ratio above 2 in most years, indicating that it has sufficient current assets to cover its current liabilities.

In contrast, the quick ratio and cash ratio have been more volatile. The quick ratio started at 1.03 in January 31, 2021, dropped significantly to 0.33 in January 31, 2023, before recovering to 1.03 in January 31, 2024, and then falling to 0.36 in January 31, 2025. Similarly, the cash ratio followed a similar path as the quick ratio. The decreasing trend in both the quick ratio and cash ratio could indicate potential liquidity challenges for the company in quickly meeting its short-term obligations without relying on inventory.

Overall, while G-III Apparel Group Ltd's current ratio has been relatively stable, the declining trend in quick ratio and cash ratio raises concerns about the company's ability to quickly convert its current assets into cash to meet its immediate obligations. Investors and stakeholders should monitor these ratios closely to assess the company's liquidity position.


Additional liquidity measure

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Cash conversion cycle days 92.71 102.32 121.81 105.12 115.99

The cash conversion cycle of G-III Apparel Group Ltd has shown fluctuations over the past five years. As of January 31, 2021, the company's cash conversion cycle was 115.99 days, indicating that it takes the company over three months to convert its investments in inventory back into cash.

By January 31, 2022, the company managed to slightly improve its cash conversion cycle to 105.12 days, suggesting a more efficient management of working capital. However, by January 31, 2023, the cash conversion cycle increased to 121.81 days, signaling potential challenges in converting inventory and accounts receivable into cash.

G-III Apparel Group Ltd seemed to have focused on enhancing its efficiency by January 31, 2024, with a notable decrease in the cash conversion cycle to 102.32 days. This improvement may indicate stronger inventory management and quicker collections on accounts receivable.

The most recent data as of January 31, 2025, shows a further reduction in the cash conversion cycle to 92.71 days, implying that the company has continued its efforts to streamline its working capital processes and improve liquidity.

Overall, the trend in G-III Apparel Group Ltd's cash conversion cycle reflects a mix of challenges and improvements in managing its working capital efficiency over the past five years. The recent decrease in the cash conversion cycle suggests positive developments in the company's ability to convert its investments into cash more swiftly.