Oxford Industries Inc (OXM)

Cash conversion cycle

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Feb 3, 2024	Nov 30, 2023	Oct 28, 2023	Aug 31, 2023	Jul 29, 2023	May 31, 2023	Apr 29, 2023	Feb 28, 2023	Jan 28, 2023	Nov 30, 2022	Oct 29, 2022	Aug 31, 2022	Jul 30, 2022	May 31, 2022	Apr 30, 2022
Days of inventory on hand (DOH)	days	108.07	98.26	53.26	57.10	53.13	53.63	60.80	59.31	58.78	58.88	65.42	67.41	88.20	90.01	75.33	74.36	59.15	59.80	54.61	56.76
Days of sales outstanding (DSO)	days	—	—	—	—	—	20.48	—	18.29	—	16.64	—	24.52	—	16.84	—	22.08	—	18.80	—	28.54
Number of days of payables	days	—	—	—	—	—	28.75	—	25.82	—	27.72	—	26.13	—	38.68	—	31.60	—	33.98	—	31.74
Cash conversion cycle	days	108.07	98.26	53.26	57.10	53.13	45.35	60.80	51.79	58.78	47.80	65.42	65.81	88.20	68.17	75.33	64.84	59.15	44.63	54.61	53.56

February 28, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 108.07 + — – —
= 108.07

The cash conversion cycle of Oxford Industries Inc has shown fluctuations over the period from April 30, 2022, to February 28, 2025. The cash conversion cycle represents the time it takes for a company to convert its resources (such as inventory) into cash inflows from sales.

The company's cash conversion cycle started at 53.56 days on April 30, 2022, and ranged between 44.63 days (July 30, 2022) and 88.20 days (February 28, 2023) during the analyzed period. A lower cash conversion cycle indicates that the company is able to efficiently manage its inventory, accounts receivable, and accounts payable, thereby generating cash inflows more quickly.

However, the cash conversion cycle increased significantly to 108.07 days on February 28, 2025, which may indicate potential inefficiencies in managing its working capital during that period. A prolonged cash conversion cycle could lead to cash flow constraints and impact the company's liquidity position.

Overall, analyzing the trend of the cash conversion cycle can provide insights into Oxford Industries Inc's operational efficiency and working capital management practices, highlighting areas that may require attention to optimize cash flow and enhance financial performance.