G-III Apparel Group Ltd (GIII)

Liquidity ratios

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
Current ratio 3.36 2.84 2.57 2.94 2.85 3.09 2.29 3.58 3.24 2.98 3.01 3.81 3.34 2.85 2.48 3.97 2.23 2.36 2.08 2.17
Quick ratio 2.17 1.76 1.15 1.54 1.50 1.60 0.83 2.24 2.10 2.05 1.97 2.78 2.26 1.94 1.12 2.55 1.18 1.34 0.72 0.97
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

The liquidity ratios of G-III Apparel Group Ltd indicate the company's ability to meet its short-term obligations.

The current ratio has shown some fluctuations but generally remained above 2 over the recent periods, indicating that the company has more than enough current assets to cover its current liabilities. The ratio has been well above the industry average of 2, reflecting a strong liquidity position during these periods.

On the other hand, the quick ratio, also known as the acid-test ratio, has been more volatile compared to the current ratio. Although it has fluctuated, the trend shows that the company has been able to cover its current liabilities with its most liquid assets, although not as comfortably as with the current assets alone.

The cash ratio provides insight into the company's ability to meet its short-term obligations using only cash and cash equivalents. The ratio has varied significantly over the periods, with some periods showing a strong cash position relative to current liabilities and others indicating a lower level of cash reserves.

Overall, while the current ratio suggests a healthy liquidity position with a comfortable cushion of current assets, the quick and cash ratios highlight the importance of closely monitoring the company's ability to cover its short-term liabilities with its most liquid assets.

Additional liquidity measure

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 conversion cycle days 124.08 159.62 131.36 128.04 152.80 187.50 136.87 116.98 119.82 154.94 100.54 126.65 137.23 164.45 94.78 102.52 103.85 157.66 117.18 103.05

The Cash Conversion Cycle (CCC) of G-III Apparel Group Ltd has shown fluctuations over the past eight quarters. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

In the most recent quarter, ending January 31, 2024, the CCC stood at 124.08 days, indicating a decrease from the previous quarter's CCC of 159.62 days. This signifies that G-III Apparel Group Ltd was able to convert its investments into cash more efficiently in the latest quarter.

Looking at the trend over the past two years, the CCC has generally fluctuated, with some quarters showing improvements in efficiency (lower CCC) while others showed a lengthening of the cycle. This suggests that the company may be experiencing challenges in managing its inventory, collections, and payment processes consistently.

Overall, a lower CCC is desirable as it indicates that the company is able to generate cash more quickly from its operations. G-III Apparel Group Ltd should continue monitoring and analyzing its CCC to identify areas of improvement in managing its working capital effectively.