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.
Peer comparison
Jan 31, 2024