Oxford Industries Inc (OXM)

Working capital 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
Total current assets	US$ in thousands	293,115	330,463	400,335	258,316	288,826
Total current liabilities	US$ in thousands	240,644	269,639	226,166	196,252	177,779
Working capital turnover		29.98	23.25	6.58	12.07	10.12

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,573,230K ÷ ($293,115K – $240,644K)
= 29.98

The working capital turnover for Oxford Industries Inc has shown considerable variability over the past five years. The ratio has demonstrated an increasing trend from 10.12 in 2020 to 29.98 in 2024, indicating that the company has been able to generate more revenue relative to its working capital over the period. However, it is noteworthy that there was a significant spike in the ratio in 2024, suggesting a notable improvement in efficiency in managing working capital to generate sales. This could be attributed to more effective inventory management, accounts receivable collection, and accounts payable payment practices. The overall upward trend in working capital turnover reflects positively on the company's ability to efficiently utilize its working capital resources to drive revenue growth.