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.