Oxford Industries Inc (OXM)

Payables turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Cost of revenue (ttm)	US$ in thousands	1,521,715	1,380,120	1,354,453	1,292,048	1,224,114	1,156,587	1,098,917	1,069,914	1,022,593	989,403	952,110	689,697	513,175	539,690	586,759	849,337	1,045,647	1,044,809	1,035,407	1,039,513
Payables	US$ in thousands	85,545	68,565	76,216	69,609	94,611	72,932	76,974	68,641	80,753	64,709	62,116	72,323	71,148	52,177	47,904	40,432	65,491	60,708	48,998	52,121
Payables turnover		17.79	20.13	17.77	18.56	12.94	15.86	14.28	15.59	12.66	15.29	15.33	9.54	7.21	10.34	12.25	21.01	15.97	17.21	21.13	19.94

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,521,715K ÷ $85,545K
= 17.79

The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating the number of times a company pays off its suppliers within a given period. A higher payables turnover ratio indicates that a company is paying off its suppliers more quickly.

Analyzing the payables turnover of Oxford Industries Inc over the past 20 quarters, we observe fluctuations in the ratio. The ratio ranges from a low of 7.21 to a high of 21.13, indicating varying levels of efficiency in managing accounts payable during this period.

The payables turnover ratio has shown an overall increasing trend from a low of 7.21 in May 2021 to a high of 21.13 in August 2019. This suggests that the company has been improving its efficiency in paying off its suppliers over time.

The highest payables turnover ratio of 21.13 in August 2019 indicates that Oxford Industries Inc was able to pay off its suppliers approximately 21 times during that quarter. This high ratio reflects a favorable liquidity position and efficient management of trade credit.

On the other hand, the lowest payables turnover ratio of 7.21 in January 2021 suggests that the company took longer to pay off its suppliers during that quarter, potentially indicating cash flow challenges or a change in payment terms with suppliers.

Overall, an upward trend in the payables turnover ratio implies improved efficiency in managing accounts payable, which can positively impact the company's liquidity and financial health. It is important for investors and stakeholders to continue monitoring this ratio to assess Oxford Industries Inc's ability to effectively manage its working capital and supplier relationships.