Oxford Industries Inc (OXM)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	38.27	41.66	43.62	50.74	65.64	54.17	45.00	41.88	42.01	33.56	29.65	57.58	87.87	100.59	92.42	72.84	53.14	53.88	53.82	55.20
Days of sales outstanding (DSO)	days	19.24	18.69	17.77	24.83	16.37	23.07	20.30	27.87	17.29	22.09	24.53	36.53	23.59	17.46	11.83	18.59	19.07	20.98	19.35	28.06
Number of days of payables	days	20.52	18.13	20.54	19.66	28.21	23.02	25.57	23.42	28.82	23.87	23.81	38.27	50.60	35.29	29.80	17.38	22.86	21.21	17.27	18.30
Cash conversion cycle	days	36.99	42.21	40.85	55.91	53.80	54.22	39.74	46.33	30.48	31.78	30.37	55.84	60.85	82.77	74.46	74.06	49.35	53.65	55.90	64.96

February 3, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.27 + 19.24 – 20.52
= 36.99

The cash conversion cycle of Oxford Industries Inc has fluctuated over the past few quarters, indicating variations in the company's operating efficiency in managing its working capital. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From the data provided, we observe that the cash conversion cycle has ranged from a low of 30.37 days to a high of 82.77 days. A shorter cash conversion cycle implies more efficient management of working capital and quicker conversion of investments into cash, while a longer cycle may indicate inefficiencies in inventory management or slower collection of accounts receivable.

The company experienced its shortest cash conversion cycle of 30.37 days in January 2022, suggesting efficient working capital management during that period. In contrast, the cycle peaked at 82.77 days in July 2020, reflecting potential challenges in converting investments into cash flows at that time.

It is essential for Oxford Industries Inc to monitor and improve its cash conversion cycle to optimize its working capital efficiency, enhance cash flow generation, and ultimately maximize shareholder value. By analyzing trends in the cash conversion cycle over time, the company can identify areas for improvement and implement strategies to streamline operations and enhance financial performance.