G-III Apparel Group Ltd (GIII)

Cash conversion cycle

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Days of inventory on hand (DOH)	days	66.56	76.35	74.62	75.16	67.66
Days of sales outstanding (DSO)	days	66.37	76.34	79.66	87.80	61.42
Number of days of payables	days	23.34	18.25	34.52	25.12	25.11
Cash conversion cycle	days	109.59	134.45	119.76	137.85	103.97

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.56 + 66.37 – 23.34
= 109.59

The cash conversion cycle for G-III Apparel Group Ltd has been fluctuating over the past five years. In the fiscal year ending January 31, 2024, the company's cash conversion cycle decreased to 109.59 days from 134.45 days in the previous year. This indicates that G-III Apparel Group was able to manage its cash conversion more efficiently, resulting in a shorter cycle.

Comparing the data to earlier years, the company's cash conversion cycle was also lower than in January 2021 and January 2019, demonstrating an improvement in managing its cash flow and working capital efficiency. The shorter cash conversion cycle suggests that the company is able to convert its inventory into cash quickly, which is a positive sign for liquidity and operational efficiency.

However, it is important to note that the cash conversion cycle increased compared to January 2020, indicating that the company may have faced challenges in managing its working capital in the subsequent year. Overall, continuous monitoring and improvement in the cash conversion cycle can help G-III Apparel Group Ltd maintain a healthy level of liquidity and operational efficiency.