G-III Apparel Group Ltd (GIII)

G-III Apparel Group Ltd demonstrates a strong solvency position as reflected in its solvency ratios. The Debt-to-Assets ratio, which measures the proportion of a company's assets financed by debt, has consistently been at 0.00 over the period from January 31, 2021, to January 31, 2025. This indicates that the company has been able to finance its assets without relying on debt significantly.

Similarly, the Debt-to-Capital and Debt-to-Equity ratios have also remained at 0.00 during the same period. This suggests that the company has been able to maintain a capital structure with minimal debt obligations relative to its capital and equity, reflecting a conservative approach to leverage.

The Financial Leverage ratio, which evaluates the extent to which a company relies on debt to fund its operations, shows a declining trend from 2.82 in January 31, 2021, to 1.48 in January 31, 2025. This indicates that the company has been reducing its reliance on debt and improving its financial leverage position over time.

Overall, G-III Apparel Group Ltd's solvency ratios portray a financially healthy and stable position, with a low level of debt relative to its assets, capital, and equity. This indicates the company's ability to manage its financial obligations effectively and maintain a strong financial structure.

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Coverage ratios

The interest coverage ratio of G-III Apparel Group Ltd has shown significant fluctuations over the past five years.

As of January 31, 2021, the interest coverage ratio was quite low at 0.58, indicating that the company's operating income was only sufficient to cover 58% of its interest expenses. This could be a cause for concern as it suggests a potential risk of financial distress.

However, the situation improved drastically by January 31, 2022, with the interest coverage ratio increasing to 5.53. This indicates that the company's operating income was able to cover its interest expenses more than five times over, reflecting a healthier financial position.

Unfortunately, the trend reversed in the following year, with the interest coverage ratio falling to -1.44 as of January 31, 2023. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover its interest expenses, which can be a sign of financial instability.

On a positive note, the interest coverage ratio bounced back strongly by January 31, 2024, reaching 7.08. This indicates that the company's operating income comfortably covered its interest expenses, signaling a robust financial position.

Finally, as of January 31, 2025, the interest coverage ratio surged to 15.32, further strengthening the company's ability to meet its interest obligations with its operating income.

In summary, while G-III Apparel Group Ltd experienced fluctuations in its interest coverage ratio over the five-year period, it managed to significantly improve its financial position by increasing its ability to cover interest expenses, marking a positive trend towards financial health and stability.