Oxford Industries Inc (OXM)

Oxford Industries Inc's liquidity ratios show varying levels of liquidity over the periods highlighted. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has remained relatively stable around 1.2 throughout the periods, indicating that the company has just about enough current assets to cover its current liabilities.

In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has fluctuated significantly. From a low of 0.03 in February 28, 2023, the quick ratio improved but remained relatively low at 0.38 on February 3, 2024, and then decreased to 0.04 by February 28, 2025. This suggests that the company may have limited ability to meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has remained consistently low at around 0.03 to 0.04 across all periods. This indicates that Oxford Industries Inc relies more on non-cash current assets to meet its short-term obligations.

Overall, while the current ratio indicates a satisfactory liquidity position, the low quick and cash ratios suggest that Oxford Industries Inc may face challenges in meeting its short-term obligations without relying on inventory or other non-cash assets.

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Additional liquidity measure

The cash conversion cycle of Oxford Industries Inc has exhibited fluctuations over the analyzed periods. Starting on January 28, 2023, the company's cash conversion cycle stood at 53.74 days, indicating a relatively efficient management of cash, inventory, and receivables.

However, by February 28, 2023, the cash conversion cycle increased significantly to 153.73 days, suggesting delays in collecting receivables and managing inventory efficiently. The company's ability to convert its resources into cash slowed down during this period.

A notable improvement was observed by February 3, 2024, when the cash conversion cycle decreased to 36.91 days, showcasing a more streamlined cash management process. This efficiency was short-lived as by February 29, 2024, the cycle increased to 101.13 days, indicating a resurgence in delays in converting resources into liquid cash.

Finally, as of February 28, 2025, the cash conversion cycle stood at 108.64 days, showing a moderate increase from the previous year. Overall, Oxford Industries Inc has experienced varying levels of efficiency in managing its cash conversion cycle, necessitating a closer examination of its working capital management practices.