G-III Apparel Group Ltd (GIII)

Cash ratio

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
Cash and cash equivalents US$ in thousands 507,829 197,391 197,735 289,729 191,652 150,719 150,977 438,411 465,984 279,564 509,988 396,311 351,934 149,745 252,798 616,183 197,372 55,801 39,568 48,312
Short-term investments US$ in thousands — — — — — — — — — — 63,383 60,850 63,523 62,177 2 — — — — —
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
Cash ratio 1.03 0.33 0.32 0.57 0.33 0.23 0.20 0.97 0.91 0.51 1.18 1.31 1.03 0.44 0.54 1.52 0.32 0.08 0.06 0.09

January 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($507,829K + $—K) ÷ $493,628K
= 1.03

The cash ratio of G-III Apparel Group Ltd has fluctuated over the past few quarters, ranging from a low of 0.06 to a high of 1.52. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations, while a lower ratio may suggest liquidity challenges.

In analyzing the trend of the cash ratio, we observe that it reached its peak at 1.52 in January 2020, indicating that the company had a significant amount of cash and cash equivalents relative to its short-term liabilities at that time. Subsequently, there were fluctuations in the ratio, with some quarters showing lower ratios like 0.06 or 0.08, potentially signaling a tighter liquidity position during those periods.

It is important for investors and analysts to closely monitor changes in the cash ratio to assess the company's liquidity position and ability to meet its short-term obligations. The significant fluctuations in the cash ratio of G-III Apparel Group Ltd suggest varying levels of liquidity risk over the analyzed periods.