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.