G-III Apparel Group Ltd (GIII)

Debt-to-equity ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Long-term debt	US$ in thousands	402,807	402,846	403,304	403,586	483,840	787,892	495,668	516,828	515,344	513,466	512,017	509,784	507,950	504,328	405,003	900,682	396,794	674,741	553,118	411,087
Total stockholders’ equity	US$ in thousands	1,550,260	1,503,220	1,382,120	1,380,450	1,385,450	1,622,260	1,584,000	1,558,290	1,519,910	1,486,240	1,380,610	1,357,880	1,336,240	1,310,270	1,237,750	1,246,230	1,290,670	1,260,300	1,167,820	1,186,830
Debt-to-equity ratio		0.26	0.27	0.29	0.29	0.35	0.49	0.31	0.33	0.34	0.35	0.37	0.38	0.38	0.38	0.33	0.72	0.31	0.54	0.47	0.35

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 been fluctuating over the past two years. As of January 31, 2024, the company's debt-to-equity ratio was 0.26, indicating that the company had a relatively low level of debt compared to its equity. This suggests that the company has a strong equity base to support its operations and growth.

Looking back at the trend, we observe that the debt-to-equity ratio has been relatively stable in the range of 0.26 to 0.35 from January 2020 to July 2023. However, there was a notable increase in the ratio in April 2020 and January 2020, reaching 0.72 and 0.54, respectively. These higher ratios may imply that the company took on more debt during those periods, which could have been for various reasons such as financing acquisitions or expansions.

It is important to note that a lower debt-to-equity ratio is generally considered favorable as it indicates lower financial risk and a stronger financial position. On the other hand, a higher ratio could suggest that the company is relying more on debt to finance its operations, which may increase its financial risk and interest payments.

Overall, the debt-to-equity ratio of G-III Apparel Group Ltd has shown some variability over the analyzed periods, but the recent ratio of 0.26 as of January 31, 2024, indicates a relatively healthy balance between debt and equity in the company's capital structure.