Oxford Industries Inc (OXM)

Cash conversion cycle

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Days of inventory on hand (DOH)	days	38.09	65.53	42.00	49.68	53.11
Days of sales outstanding (DSO)	days	19.24	16.37	17.29	23.59	19.07
Number of days of payables	days	20.42	28.16	28.81	28.61	22.85
Cash conversion cycle	days	36.91	53.74	30.48	44.66	49.33

February 3, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.09 + 19.24 – 20.42
= 36.91

The cash conversion cycle of Oxford Industries Inc has fluctuated over the past five years. In the most recent period, as of February 3, 2024, the company's cash conversion cycle was 36.91 days, indicating that it takes approximately 37 days for the company to convert its investments in inventory and other resources into cash from sales.

Compared to the prior year, the cash conversion cycle decreased significantly from 53.74 days to 36.91 days, suggesting improved efficiency in managing working capital and converting sales into cash. This is a positive trend for the company as it indicates faster conversion of inventory and receivables into cash, which can improve liquidity and overall financial performance.

Looking back further, in January 2022, the cash conversion cycle was 30.48 days, which was the lowest over the five-year period analyzed. However, in the preceding years, the cash conversion cycle was higher, ranging from 44.66 days in January 2021 to 49.33 days in February 2020.

Overall, while there have been fluctuations in the cash conversion cycle of Oxford Industries Inc over the years, the recent decrease in the cycle indicates an improvement in efficiency and effectiveness in managing working capital and cash flow. Continued monitoring of this metric will be essential to ensure optimal working capital management and financial performance.