G-III Apparel Group Ltd (GIII)

Debt-to-assets ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	402,807	483,840	515,344	507,950	396,794
Total assets	US$ in thousands	2,681,160	2,712,400	2,742,530	2,436,390	2,565,140
Debt-to-assets ratio		0.15	0.18	0.19	0.21	0.15

January 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $402,807K ÷ $2,681,160K
= 0.15

The debt-to-assets ratio of G-III Apparel Group Ltd has shown fluctuations over the past five years. The ratio decreased from 0.21 in January 2021 to 0.15 in both January 2020 and January 2024, indicating a lower proportion of debt to total assets in those years. However, there was an increase in the ratio in January 2023 and 2022, reaching 0.18 and 0.19, respectively.

Overall, the trend in the debt-to-assets ratio suggests that the company has been effectively managing its debt levels in relation to its total assets. A decreasing ratio indicates a lower reliance on debt financing compared to total assets, which can be viewed positively as it signifies a stronger financial position and potential lower financial risk. Conversely, an increasing ratio could indicate an increased reliance on debt to finance operations and investments, which may raise concerns about the company's financial health and leverage.

It is important for stakeholders to continue monitoring the debt-to-assets ratio trend to assess the company's financial stability and evaluate its ability to meet its financial obligations in the long term.