Oxford Industries Inc (OXM)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	1,573,230	1,414,130	1,145,750	748,833	1,123,790
Property, plant and equipment	US$ in thousands	195,137	177,584	152,447	159,732	191,517
Fixed asset turnover		8.06	7.96	7.52	4.69	5.87

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,573,230K ÷ $195,137K
= 8.06

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Oxford Industries Inc, the fixed asset turnover has shown a generally increasing trend over the past five years, indicating improved efficiency in utilizing its fixed assets to generate revenue.

The ratio was 5.87 in fiscal year 2020, which means that for every dollar invested in fixed assets, the company generated $5.87 in revenue. Subsequently, it increased to 4.69 in fiscal year 2021, indicating a somewhat lower efficiency in asset utilization that year. However, from fiscal year 2021 to 2024, the ratio saw a consistent improvement, reaching a high of 8.06 in the most recent fiscal year.

This upward trend in the fixed asset turnover ratio suggests that Oxford Industries Inc has been effectively increasing revenue generated from its fixed assets over the years, reflecting improved operational efficiency and potentially better management of its asset base. Overall, the company's ability to generate revenue from its fixed assets has been on an upward trajectory, which is a positive sign for its operational performance and profitability.