G-III Apparel Group Ltd (GIII)

Return on equity (ROE)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	193,566	176,168	-134,382	200,593	23,545
Total stockholders’ equity	US$ in thousands	1,679,480	1,550,260	1,385,450	1,519,910	1,336,240
ROE		11.53%	11.36%	-9.70%	13.20%	1.76%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $193,566K ÷ $1,679,480K
= 11.53%

Based on the provided data, G-III Apparel Group Ltd's return on equity (ROE) has shown a fluctuating trend over the past five years. The ROE as of January 31, 2021, was 1.76%, indicating a relatively low return generated on shareholders' equity during that period.

However, there was a significant improvement in the ROE as of January 31, 2022, reaching 13.20%, which suggests a substantial increase in the company's efficiency in generating profits from shareholders' equity.

The following year, as of January 31, 2023, the ROE turned negative at -9.70%, indicating that the company experienced a loss relative to its equity base. This negative ROE may raise concerns about the company's performance and efficiency in utilizing equity in that particular period.

The trend reversed again in the subsequent years, with the ROE as of January 31, 2024, standing at 11.36% and January 31, 2025, at 11.53%. These positive ROE figures indicate the company's improved profitability and effectiveness in utilizing shareholders' equity to generate returns.

In conclusion, G-III Apparel Group Ltd's ROE has shown variability over the past five years, with significant fluctuations from positive to negative values. It is essential for investors and stakeholders to closely monitor these fluctuations and consider other financial metrics to assess the company's overall financial performance and sustainability.