G-III Apparel Group Ltd (GIII)

Financial leverage 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
Total assets	US$ in thousands	2,681,160	2,749,330	2,662,050	2,554,480	2,712,400	3,290,220	3,082,350	2,718,270	2,742,530	2,728,020	2,553,590	2,398,720	2,436,390	2,469,420	2,269,810	2,798,960	2,565,140	2,928,610	2,712,440	2,446,540
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
Financial leverage ratio		1.73	1.83	1.93	1.85	1.96	2.03	1.95	1.74	1.80	1.84	1.85	1.77	1.82	1.88	1.83	2.25	1.99	2.32	2.32	2.06

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,681,160K ÷ $1,550,260K
= 1.73

The financial leverage ratio of G-III Apparel Group Ltd has shown fluctuations over the past few quarters. The ratio indicates the level of the company's debt in relation to its equity. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure.

From the data provided, we can see that the financial leverage ratio has been somewhat volatile, ranging from a low of 1.74 to a high of 2.32 over the past few quarters. This indicates that G-III Apparel Group Ltd has been adjusting its capital structure, potentially taking on more debt at certain points.

The company's financial leverage ratio peaked at 2.32 in the most recent quarter, signaling a significant increase in debt relative to equity. This could pose risks in terms of the company’s ability to meet its debt obligations, especially if economic conditions worsen.

It is important for investors and stakeholders to closely monitor the financial leverage ratio of G-III Apparel Group Ltd to assess the company's risk profile and financial health. A consistently high or increasing financial leverage ratio may indicate a higher level of financial risk associated with the company.