G-III Apparel Group Ltd (GIII)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	181,440	507,829	191,652	465,984	351,934
Short-term investments	US$ in thousands	—	—	—	—	63,523
Total current liabilities	US$ in thousands	510,490	493,628	579,069	510,805	402,002
Cash ratio		0.36	1.03	0.33	0.91	1.03

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($181,440K + $—K) ÷ $510,490K
= 0.36

The cash ratio of G-III Apparel Group Ltd has shown some fluctuations over the years based on the provided data. The cash ratio, which is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 1.03 on January 31, 2021. This indicates that the company had more than enough cash to cover its short-term obligations at that time.

However, the cash ratio decreased to 0.91 on January 31, 2022, which suggests a slight decline in the company's liquidity position. The ratio further dropped to 0.33 by January 31, 2023, indicating a significant decrease in the company's ability to meet its short-term obligations solely from its cash reserves.

There was a notable improvement as the cash ratio rebounded to 1.03 by January 31, 2024, reaching a level similar to that of January 31, 2021. This recovery implies that the company's liquidity position strengthened significantly compared to the previous year.

Nevertheless, by January 31, 2025, the cash ratio dropped once again to 0.36, indicating a decrease in the company's liquidity reserves relative to its short-term liabilities.

Overall, the trend in the cash ratio of G-III Apparel Group Ltd shows some variability, with fluctuations indicating changes in the company's liquidity position over the years. It is crucial for stakeholders to monitor these fluctuations in the cash ratio to assess the company's ability to cover its short-term obligations with its available cash resources.