Oxford Industries Inc (OXM)

Payables 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
Payables	US$ in thousands	85,545	94,611	80,753	71,148	65,491
Payables turnover		17.87	12.96	12.67	12.76	15.98

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,529,060K ÷ $85,545K
= 17.87

The payables turnover ratio of Oxford Industries Inc has shown a fluctuating trend over the past five years. The ratio was 17.87 in 2024, indicating that the company paid its accounts payable approximately 17.87 times during the year. This represents an improvement compared to the previous year, where the ratio was 12.96.

Although the payables turnover ratio has varied year to year, it generally indicates that Oxford Industries Inc is effectively managing its accounts payable, with a consistent ability to pay off its obligations in a timely manner. The higher turnover ratio in 2024 suggests that the company has been more efficient in managing its payables compared to previous years, which could imply better cash flow management or negotiation of favorable payment terms with suppliers. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's payables management performance.