Oxford Industries Inc (OXM)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	1,529,060	1,226,210	1,023,030	907,645	1,046,230
Inventory	US$ in thousands	159,565	220,138	117,709	123,543	152,229
Inventory turnover		9.58	5.57	8.69	7.35	6.87

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,529,060K ÷ $159,565K
= 9.58

Based on the inventory turnover figures for Oxford Industries Inc over the past five years, we observe a fluctuating trend. In the most recent fiscal year ending on February 3, 2024, the inventory turnover ratio was 9.58, reflecting an improvement from the previous year's figure of 5.57 as of January 28, 2023. This significant increase indicates that the company sold and replaced its inventory nearly 9.58 times during the year, demonstrating efficient inventory management.

Comparing the latest inventory turnover ratio to the ratios from the preceding years, we see that the company's performance in managing its inventory has been variable. The ratio of 9.58 for 2024 is higher than the ratios for 2023 and 2020 but lower than the ratio for 2022. This suggests that Oxford Industries Inc has experienced fluctuations in its inventory turnover efficiency over the past five years.

Overall, a higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which can be a positive sign of effective inventory management and liquidity. However, it is essential to monitor this ratio over time to assess the company's ability to convert inventory into sales efficiently and effectively manage its working capital.