G-III Apparel Group Ltd (GIII)

Debt-to-equity 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-equity ratio		0.26	0.35	0.34	0.38	0.31

January 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $402,807K ÷ $1,550,260K
= 0.26

The debt-to-equity ratio of G-III Apparel Group Ltd has shown a decreasing trend over the five-year period from January 31, 2020, to January 31, 2024. The ratio decreased from 0.31 in 2020 to 0.26 in 2024.

A lower debt-to-equity ratio indicates that the company relies less on debt financing relative to equity financing. This could suggest a strengthened financial position and reduced financial risk, as the company has a lower level of debt in comparison to its equity.

The decreasing trend in the debt-to-equity ratio may imply that the company has been gradually reducing its reliance on debt to fund its operations or expansion. It could also indicate efficient financial management and a conservative approach to capital structure.

Overall, the decreasing debt-to-equity ratio of G-III Apparel Group Ltd over the past five years highlights a positive trend in the company's financial leverage and potential improvement in its financial stability.