G-III Apparel Group Ltd (GIII)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,550,260 1,385,450 1,519,910 1,336,240 1,290,670
Debt-to-capital ratio 0.21 0.26 0.25 0.28 0.24

January 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $402,807K ÷ ($402,807K + $1,550,260K)
= 0.21

The debt-to-capital ratio of G-III Apparel Group Ltd has shown a declining trend over the past five years, indicating that the company has been relying less on debt to finance its operations relative to its total capital structure. As of January 31, 2024, the ratio stands at 0.21, a decrease from 0.26 in the previous year. This suggests that a smaller proportion of the company's capital is derived from debt sources, which can be viewed positively as it indicates lower financial risk and potentially increased solvency. The trend of decreasing debt-to-capital ratio over the years may signal a conservative approach to managing the company's capital structure and debt obligations. It is important to continue monitoring this ratio to assess the company's ongoing capital structure decisions and financial health.