G-III Apparel Group Ltd (GIII)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	283,344	-55,431	-148,505	-148,734	-109,461	250,214	311,126	318,808	311,093	271,345	223,279	172,937	82,842	87,691	120,493	158,820	227,654	239,742	236,895	233,199
Interest expense (ttm)	US$ in thousands	39,596	48,464	53,492	56,550	56,602	53,539	49,841	49,865	49,666	49,049	55,376	45,523	36,223	28,011	11,339	10,599	10,491	9,157	9,645	10,180
Interest coverage		7.16	-1.14	-2.78	-2.63	-1.93	4.67	6.24	6.39	6.26	5.53	4.03	3.80	2.29	3.13	10.63	14.98	21.70	26.18	24.56	22.91

January 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $283,344K ÷ $39,596K
= 7.16

The interest coverage ratio for G-III Apparel Group Ltd has varied significantly over the past few quarters.

In January 2024, the interest coverage ratio was 7.16, indicating that the company generated enough operating income to cover its interest expenses 7.16 times over. This suggests a healthy ability to meet its interest obligations from its operational profits.

However, in October 2023, July 2023, and April 2023, the interest coverage ratios were -1.14, -2.78, and -2.63, respectively. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses during those periods. This raises concerns about the company's ability to meet its interest payments from its earnings.

The interest coverage ratio improved in the following quarters, reaching 4.67 in October 2022, 6.24 in July 2022, and 6.39 in April 2022. These ratios indicate an improved ability to cover interest payments from operating income.

Overall, the trend in G-III Apparel Group Ltd's interest coverage ratio has been inconsistent, with fluctuations between positive and negative ratios. It is important for investors and creditors to closely monitor this ratio to assess the company's financial health and ability to service its debt obligations.