Oxford Industries Inc (OXM)

Current ratio

		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
Total current assets	US$ in thousands	293,115	291,379	282,380	327,704	330,463	299,495	421,248	407,912	400,335	366,953	349,046	308,739	258,316	262,463	298,417	423,692	288,826	268,828	265,044	273,167
Total current liabilities	US$ in thousands	240,644	212,512	232,561	242,046	269,639	230,395	222,640	226,417	226,166	207,172	220,184	225,090	196,252	176,389	173,701	153,127	177,779	164,118	164,119	166,301
Current ratio		1.22	1.37	1.21	1.35	1.23	1.30	1.89	1.80	1.77	1.77	1.59	1.37	1.32	1.49	1.72	2.77	1.62	1.64	1.61	1.64

February 3, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $293,115K ÷ $240,644K
= 1.22

The current ratio of Oxford Industries Inc has fluctuated over the past 20 reporting periods, ranging from a low of 1.21 to a high of 2.77. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio of 1 indicates that the company's current assets are just sufficient to cover its current liabilities.

In analyzing the trend of the current ratio, we observed that it has been relatively stable around 1.5 to 1.8 in recent periods, with occasional spikes and dips. The significant increase to 2.77 in the May 2, 2020, quarter suggests a temporary boost in current assets relative to current liabilities.

While a current ratio above 1 is generally considered healthy, a very high ratio, such as 2.77, may indicate an overly conservative approach to managing current assets and liabilities. Conversely, a low ratio, such as 1.21, could signal potential liquidity issues.

Overall, the current ratio of Oxford Industries Inc has exhibited some variability but generally remains within a reasonable range, indicating that the company has been effective in managing its short-term financial obligations.