G-III Apparel Group Ltd (GIII)

The solvency ratios of G-III Apparel Group Ltd indicate its ability to meet its long-term financial obligations and the extent to which it relies on borrowed funds.

1. Debt-to-assets ratio: This ratio shows the proportion of total assets financed by debt. G-III's debt-to-assets ratio has been decreasing over the past five years, indicating a lower reliance on debt financing and a stronger financial position in terms of asset backing.

2. Debt-to-capital ratio: This ratio measures the extent of a company's capital structure that is financed by debt. G-III's debt-to-capital ratio has also been on a downward trend, suggesting a more favorable mix of debt and equity in its capital structure.

3. Debt-to-equity ratio: The debt-to-equity ratio indicates the proportion of shareholder equity and debt used to finance the company's assets. G-III has shown a decreasing trend in its debt-to-equity ratio, reflecting a reduced financial risk due to less reliance on debt financing.

4. Financial leverage ratio: This ratio compares the company's total assets to its equity, providing insight into the level of financial risk borne by the shareholders. G-III's financial leverage ratio has decreased over the years, indicating a stronger equity position relative to its total assets and lower financial risk.

Overall, the decreasing trend in G-III Apparel Group Ltd's solvency ratios suggests improved solvency and financial stability over the years, with a lower reliance on debt financing and stronger equity positions. This indicates positive financial health and reduced risk of default in meeting long-term obligations.

---

Coverage ratios

Interest coverage ratio measures a company's ability to pay interest payments on its outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.

Looking at the trend for G-III Apparel Group Ltd, we observe fluctuations in the interest coverage ratio over the past five years. In January 2024, the interest coverage ratio improved significantly to 7.16, indicating the company's ability to cover its interest payments more than 7 times. This is a positive sign as it suggests the company has sufficient earnings to meet its interest obligations comfortably.

However, the interest coverage ratio was negative in January 2023, implying the company's operating income was insufficient to cover its interest expenses during that period. The ratio recovered in January 2022, showing an improvement to 6.26, which indicates the company's ability to cover its interest payments more than 6 times.

In January 2021, the interest coverage ratio was 1.65, indicating a lower ability to cover interest expenses. The ratio significantly increased to 21.70 in January 2020, suggesting a substantial improvement in the company's ability to cover its interest obligations.

Overall, although there were fluctuations in the interest coverage ratio over the past five years, the recent improvement in January 2024 to 7.16 reflects positively on G-III Apparel Group Ltd's ability to meet its interest payments comfortably.