G-III Apparel Group Ltd (GIII)

Operating return on assets (Operating ROA)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Operating income (ttm)	US$ in thousands	295,414	276,483	298,097	288,120	289,880	297,114	204,040	234,107	273,380	280,510	341,422	318,808	311,093	271,345	223,279	172,937	82,842	87,691	120,493	158,820
Total assets	US$ in thousands	2,483,230	2,783,610	2,696,290	2,565,400	2,681,160	2,749,330	2,662,050	49,500	2,712,400	3,290,220	3,082,350	2,718,270	2,742,530	2,728,020	2,553,590	2,398,720	3,763,600	2,469,420	2,269,810	2,798,960
Operating ROA		11.90%	9.93%	11.06%	11.23%	10.81%	10.81%	7.66%	472.94%	10.08%	8.53%	11.08%	11.73%	11.34%	9.95%	8.74%	7.21%	2.20%	3.55%	5.31%	5.67%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $295,414K ÷ $2,483,230K
= 11.90%

Operating Return on Assets (ROA) is a key financial ratio that measures a company's operational efficiency in generating profits from its assets. For G-III Apparel Group Ltd, the operating ROA has shown fluctuations over the specified periods.

At the beginning of the analyzed period in April 2020, the operating ROA stood at 5.67%. It then slightly decreased to 5.31% by July 2020, indicating a minor decline in efficiency. Subsequently, there was a more significant decrease to 3.55% by October 2020, suggesting a potential operational challenge faced by the company.

However, there was a notable improvement in the company's operational performance as the operating ROA increased to 7.21% in April 2021 and further climbed to 11.34% by January 2022. This demonstrated a positive trend and indicated enhanced efficiency in utilizing assets to generate operating profits.

The operating ROA continued to remain relatively strong, hovering between 8% to 12% from April 2022 to January 2025, with occasional fluctuations. The ratio peaked at 472.94% in April 2023, which appears to be an outlier likely due to anomalies in the financial data.

Overall, the trend in operating ROA for G-III Apparel Group Ltd reflects periods of both improvement and stability in operational efficiency and profitability. It is important for investors and stakeholders to monitor this ratio continuously to gauge the company's ability to generate profits from its assets effectively.