G-III Apparel Group Ltd (GIII)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.15 | 0.16 | 0.18 | 0.24 | 0.16 | 0.19 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.20 | 0.18 | 0.32 | 0.15 | 0.23 | 0.20 | 0.17 |
| Debt-to-capital ratio | 0.21 | 0.21 | 0.23 | 0.23 | 0.26 | 0.33 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.25 | 0.42 | 0.24 | 0.35 | 0.32 | 0.26 |
| 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 |
| 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 |
The solvency ratios of G-III Apparel Group Ltd over the past periods reflect the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
The debt-to-assets ratio has been relatively stable around 0.15 to 0.20, indicating that a modest portion of the company's assets are financed through debt, with a slight increase in the most recent period. This suggests that G-III Apparel Group has maintained a conservative approach in using debt to fund its operations.
The debt-to-capital ratio has also shown consistency in the range of 0.20 to 0.30, with a similar upward trend in the latest period. This ratio demonstrates the proportion of the company's capital structure that is financed by debt, highlighting G-III Apparel Group's reliance on debt financing, albeit at a moderate level.
The debt-to-equity ratio has exhibited a gradual increase over time from 0.26 to 0.47, indicating a rising reliance on equity relative to debt. This trend suggests that the company has been increasing its equity base to finance its operations and reduce its dependency on debt for funding, which can enhance its financial stability in the long term.
Lastly, the financial leverage ratio has fluctuated between 1.73 to 2.32, reflecting variations in the company's overall financial risk and leverage. Although the ratio has shown some volatility, it generally indicates that G-III Apparel Group has maintained a moderate level of financial leverage to support its business activities.
Overall, G-III Apparel Group Ltd's solvency ratios suggest a prudent approach to managing its debt levels and capital structure, with a mix of debt and equity financing that aligns with its long-term financial stability objectives.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
From the data provided for G-III Apparel Group Ltd, we observe fluctuations in the interest coverage ratio over the past several quarters. In the most recent quarter ending January 31, 2024, the interest coverage ratio stands at 7.16, which reflects an improvement compared to the negative ratios recorded in the previous three quarters.
The negative ratios in October 2023, July 2023, and April 2023 suggest that the company's EBIT was insufficient to cover its interest expenses in those periods, indicating potential financial distress or operational challenges. However, the subsequent improvement in the interest coverage ratio in January 2024 may indicate a positive trend towards better financial health.
Looking further back, we see that G-III Apparel Group Ltd has historically demonstrated varying levels of interest coverage, with some quarters showing strong ratios above 10 and even exceeding 20. These high ratios indicate a robust ability to meet interest payments from operating earnings.
Overall, while the recent positive trend in the interest coverage ratio for G-III Apparel Group Ltd is a promising sign, it is essential for stakeholders to monitor future financial performance to ensure sustained improvement in the company's ability to meet its interest obligations.