G-III Apparel Group Ltd (GIII)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	283,344	-55,431	-148,505	-148,734	-109,461	250,214	311,126	318,808	311,093	271,345	223,279	172,937	82,842	87,691	120,493	158,820	227,654	239,742	236,895	233,199
Total assets	US$ in thousands	2,681,160	2,749,330	2,662,050	2,554,480	2,712,400	3,290,220	3,082,350	2,718,270	2,742,530	2,728,020	2,553,590	2,398,720	2,436,390	2,469,420	2,269,810	2,798,960	2,565,140	2,928,610	2,712,440	2,446,540
Operating ROA		10.57%	-2.02%	-5.58%	-5.82%	-4.04%	7.60%	10.09%	11.73%	11.34%	9.95%	8.74%	7.21%	3.40%	3.55%	5.31%	5.67%	8.87%	8.19%	8.73%	9.53%

January 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $283,344K ÷ $2,681,160K
= 10.57%

The operating return on assets (operating ROA) for G-III Apparel Group Ltd has fluctuated over the past several quarters. The company experienced a positive operating ROA of 10.57% in January 2024, indicating that for every dollar of assets the company utilized for its operations, it generated a return of 10.57 cents.

However, in the prior quarter, the operating ROA was negative at -2.02%, suggesting that the company's operating income was insufficient to cover the assets employed in its operations. This negative trend continued in the two previous quarters, with operating ROA values of -5.58% and -5.82%.

The company showed a noteworthy improvement in operating ROA in the quarter ending October 2022, with a value of 7.60%, which further increased to 10.09% in July 2022 and peaked at 11.73% in April 2022. These higher values indicate that G-III Apparel Group Ltd was effectively utilizing its assets to generate operating profits during this period.

In the subsequent quarters, the operating ROA remained relatively stable, with values ranging from 9.53% to 5.31%. Overall, the company's operating ROA performance has shown variability, with periods of both improvement and decline, highlighting the importance of monitoring and analyzing this metric for assessing operational efficiency and profitability.