Oxford Industries Inc (OXM)

Short-term

Turnover ratios

The activity ratios of Oxford Industries Inc provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: This ratio measures how many times, on average, the company's inventory is sold and replaced over a specific period. From 2020 to 2024, Oxford Industries Inc's inventory turnover has generally improved, indicating that the company is managing its inventory more efficiently, with the ratio increasing from 6.87 in 2020 to 9.58 in 2024. A higher inventory turnover ratio suggests that the company is selling products quickly, which is positive for cash flow and working capital management.

2. Receivables Turnover: This ratio shows how many times, on average, the company collects its accounts receivable during the period. Oxford Industries Inc has experienced fluctuations in its receivables turnover over the years, peaking at 22.30 in 2023 and then declining to 18.97 in 2024. A higher receivables turnover ratio indicates that the company is efficient in collecting payments from customers.

3. Payables Turnover: The payables turnover ratio reflects how many times, on average, the company pays its suppliers during the year. Oxford Industries Inc has shown a generally increasing trend in payables turnover from 2019 to 2024, rising from 15.98 to 17.87. A higher payables turnover implies that the company is managing its payables well by paying its suppliers on time or even quickly.

4. Working Capital Turnover: This ratio measures how efficiently the company generates revenue relative to its working capital. The higher the ratio, the better the company is utilizing its working capital to generate sales. Oxford Industries Inc's working capital turnover has shown variability over the years, with a significant increase in 2024 to 29.98 from 10.12 in 2020. This suggests that the company has improved its ability to generate revenue relative to its working capital in the most recent year.

Overall, the trends in Oxford Industries Inc's activity ratios indicate improvements in inventory management, receivables collection, payables management, and the utilization of working capital, reflecting enhanced operational efficiency and effectiveness.

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Average number of days

The activity ratios of Oxford Industries Inc provide insights into how efficiently the company manages its inventory, receivables, and payables.

- Days of Inventory on Hand (DOH): The DOH ratio measures how many days it takes for the company to sell its inventory. A lower DOH is generally preferred as it indicates efficient inventory management. Oxford Industries Inc has shown a decreasing trend in its DOH over the last five years, with a significant improvement from 65.53 days in 2023 to 38.09 days in 2024. This suggests that the company is managing its inventory more effectively, potentially reducing carrying costs and minimizing the risk of obsolete inventory.

- Days of Sales Outstanding (DSO): The DSO ratio reflects how long it takes for the company to collect payments from its customers. A lower DSO indicates that the company is collecting receivables more quickly, improving cash flow. Oxford Industries Inc has maintained relatively stable DSO ratios over the last five years, with a small increase from 16.37 days in 2023 to 19.24 days in 2024. This suggests that the company's credit management practices are consistent, although there is a slight delay in collecting payments in the most recent year.

- Number of Days of Payables: The number of days of payables ratio measures how long it takes for the company to pay its suppliers. A higher number of days indicates that the company takes longer to pay its bills, potentially improving cash flow. Oxford Industries Inc has shown fluctuations in its payables days over the last five years, with a decrease from 28.16 days in 2023 to 20.42 days in 2024. This reduction may indicate a more aggressive approach to managing payables or renegotiating payment terms with suppliers.

Overall, the trend in these activity ratios suggests that Oxford Industries Inc has made improvements in managing its inventory and payables, although there is room for further optimization in receivables collection to enhance cash flow efficiency.

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Long-term

Oxford Industries Inc's long-term activity ratios indicate the efficiency of the company in managing its fixed and total assets over the past five years. The fixed asset turnover has shown a consistent increase from 4.69 in 2021 to 8.06 in 2024, indicating that the company is generating more sales relative to its investment in fixed assets. This suggests improved efficiency in utilizing its long-term assets for revenue generation.

Furthermore, the total asset turnover has also shown a positive trend, increasing from 0.87 in 2021 to 1.43 in 2024. This signifies that Oxford Industries Inc is generating more revenue per dollar of total assets employed, reflecting an overall improvement in the company's asset utilization efficiency.

Overall, the upward trajectory in both fixed asset turnover and total asset turnover ratios suggests that Oxford Industries Inc has been effectively leveraging its long-term assets to drive sales growth and enhance operational efficiency in recent years.