G-III Apparel Group Ltd (GIII)

Return on total capital

		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
Earnings before interest and tax (EBIT) (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
Long-term debt	US$ in thousands	402,807	402,846	403,304	403,586	483,840	787,892	495,668	516,828	515,344	513,466	512,017	509,784	507,950	504,328	405,003	900,682	396,794	674,741	553,118	411,087
Total stockholders’ equity	US$ in thousands	1,550,260	1,503,220	1,382,120	1,380,450	1,385,450	1,622,260	1,584,000	1,558,290	1,519,910	1,486,240	1,380,610	1,357,880	1,336,240	1,310,270	1,237,750	1,246,230	1,290,670	1,260,300	1,167,820	1,186,830
Return on total capital		14.51%	-2.91%	-8.32%	-8.34%	-5.86%	10.38%	14.96%	15.36%	15.29%	13.57%	11.80%	9.26%	4.49%	4.83%	7.33%	7.40%	13.49%	12.39%	13.77%	14.59%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $283,344K ÷ ($402,807K + $1,550,260K)
= 14.51%

Return on total capital for G-III Apparel Group Ltd has fluctuated over the past few quarters. The company experienced a positive trend from April 2020 to April 2021, with the return on total capital increasing steadily from 7.40% to 15.29%. However, there was a slight dip in the return on total capital in the subsequent quarter to 14.96%. This was followed by further declines in the return on total capital for the next few quarters, reaching -8.32% in July 2023, and a subsequent decrease to -2.91% in October 2023.

The return on total capital saw a significant recovery in the most recent quarter, reaching 14.51%. The overall trend indicates volatility in the company's ability to generate returns on its total capital, with periods of growth followed by periods of decline. It will be important for the company to focus on sustainable strategies to improve and stabilize its return on total capital in the future.