G-III Apparel Group Ltd (GIII)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.16% | 34.12% | 35.62% | 36.35% | 35.48% |
| Operating profit margin | 9.16% | -3.39% | 11.21% | 4.04% | 7.23% |
| Pretax margin | 7.83% | -4.24% | 9.78% | 1.75% | 5.78% |
| Net profit margin | 5.70% | -4.12% | 7.23% | 1.15% | 4.57% |
G-III Apparel Group Ltd has shown varying levels of profitability over the past five years.
The gross profit margin has been relatively stable, ranging from 34.12% to 40.16%, indicating the company's ability to control its production costs and generate a reasonable profit on its products.
The operating profit margin has fluctuated significantly, with negative values in some years. This suggests the company has faced challenges in controlling its operating expenses and may have experienced operational inefficiencies.
The pretax margin has also shown variability, with the company experiencing negative margins in some years. This could indicate that G-III Apparel Group has had difficulties managing its overall financial performance before accounting for taxes.
The net profit margin has also been inconsistent, showing both positive and negative values over the period. A positive net profit margin indicates that the company was able to generate profit after accounting for all expenses, including taxes. However, the negative net profit margins in some years suggest that G-III Apparel Group struggled to maintain profitability during those periods.
Overall, G-III Apparel Group Ltd's profitability ratios highlight the company's mixed financial performance over the past five years, with fluctuations in profitability metrics indicating potential challenges in cost management and operational efficiency.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.57% | -4.04% | 11.34% | 3.40% | 8.87% |
| Return on assets (ROA) | 6.57% | -4.91% | 7.31% | 0.97% | 5.61% |
| Return on total capital | 14.51% | -5.86% | 15.29% | 4.49% | 13.49% |
| Return on equity (ROE) | 11.36% | -9.60% | 13.20% | 1.76% | 11.14% |
Based on the profitability ratios of G-III Apparel Group Ltd over the past five years, we can observe the following trends:
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's ability to generate operating profit from its total assets. G-III Apparel Group's Operating ROA has fluctuated over the years, with a significant improvement in 2022 (11.34%) compared to a negative figure in 2023 (-4.04%). This suggests that the company has been more efficient in generating operating profits relative to its asset base in recent years.
2. Return on Assets (ROA): ROA measures the company's overall profitability in relation to its total assets. G-III Apparel Group's ROA has shown variations, with the highest value in 2022 (7.31%) and the lowest in 2023 (-4.91%). The positive trend in ROA indicates that the company has been able to improve its profitability relative to its asset base, especially in 2022.
3. Return on Total Capital: This ratio evaluates the returns generated from both equity and debt capital employed in the business. G-III Apparel Group's Return on Total Capital has been volatile, notably with a negative value in 2023 (-5.86%). However, there has been a steady improvement in recent years, reaching the highest value in 2022 (15.29%). This suggests that the company has been utilizing its capital more effectively to generate returns for its investors.
4. Return on Equity (ROE): ROE represents the return on shareholders' equity investment in the company. G-III Apparel Group's ROE has shown fluctuations, with a notable improvement in 2022 (13.20%) compared to a negative figure in 2023 (-9.60%). This indicates that the company has been able to enhance its profitability concerning the equity investment, particularly in 2022.
In summary, G-III Apparel Group Ltd has exhibited varying profitability performance over the past five years, with improvements in certain ratios indicating better efficiency in utilizing assets and capital to generate returns for shareholders. However, the company has also faced challenges, as seen in negative ratios in some years, underscoring the importance of sustained efforts to enhance profitability and overall financial performance.