G-III Apparel Group Ltd (GIII)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	288,924	272,134	281,715	259,969	261,729	268,963	189,319	234,107	273,380	286,821	348,631	327,992	320,277	277,845	228,989	192,917	103,953	126,465	159,712	179,650
Interest expense (ttm)	US$ in thousands	18,842	23,587	28,253	32,869	39,596	48,464	53,492	56,550	56,602	53,539	49,841	49,865	49,666	49,049	55,376	51,979	50,354	49,021	42,858	44,466
Interest coverage		15.33	11.54	9.97	7.91	6.61	5.55	3.54	4.14	4.83	5.36	6.99	6.58	6.45	5.66	4.14	3.71	2.06	2.58	3.73	4.04

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $288,924K ÷ $18,842K
= 15.33

The interest coverage ratio for G-III Apparel Group Ltd shows the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). Looking at the historical trend:

1. The interest coverage ratio was 4.04 in April 2020, indicating that the company generated earnings that were 4.04 times its interest expense for that period.

2. The ratio gradually declined to 2.06 by January 2021, suggesting a decrease in the company's ability to cover its interest payments with its operating earnings.

3. However, there was an improvement in the ratio over the subsequent quarters, with the ratio reaching 15.33 by January 2025. This significant increase indicates a strong ability to cover interest expenses with operating profits.

Overall, the trend in G-III Apparel Group's interest coverage ratio displays fluctuations but generally shows an upward trajectory in recent periods, reflecting a healthier financial position in terms of meeting interest obligations through operating earnings.