G-III Apparel Group Ltd (GIII)

Return on total capital

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Earnings before interest and tax (EBIT) US$ in thousands 288,701 280,194 -81,568 274,797 29,347
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,679,480 1,550,260 1,385,450 1,519,910 1,336,240
Return on total capital 17.19% 18.07% -5.89% 18.08% 2.20%

January 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $288,701K ÷ ($—K + $1,679,480K)
= 17.19%

Analyzing the return on total capital of G-III Apparel Group Ltd over the past five years shows fluctuations in its performance. In January 2021, the return on total capital was 2.20%, indicating a relatively low value. This improved significantly in January 2022, reaching 18.08%, suggesting better utilization of capital to generate returns.

However, there was a sharp decline in January 2023, with a negative return on total capital of -5.89%, indicating potential issues with capital efficiency during that period. The company then rebounded in the following years, with returns of 18.07% in January 2024 and 17.19% in January 2025, demonstrating a strong performance in capital deployment and profitability during those periods.

Overall, the return on total capital for G-III Apparel Group Ltd has shown variability over the past five years, with notable improvements in certain years and a significant dip in one year. Investors and analysts may want to further investigate the underlying factors contributing to these fluctuations to assess the company's capital allocation strategies and operational efficiency.