Oxford Industries Inc (OXM)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.18 | 1.42 | 1.27 | 1.32 | 1.22 | 1.22 | 1.37 | 1.37 | 1.21 | 1.21 | 1.35 | 1.35 | 1.23 | 1.23 | 1.30 | 1.30 | 1.89 | 1.89 | 1.80 | 1.80 |
| Quick ratio | 0.04 | 0.03 | 0.08 | 0.03 | 0.03 | 0.38 | 0.04 | 0.41 | 0.03 | 0.36 | 0.04 | 0.46 | 0.03 | 0.27 | 0.07 | 0.43 | 0.84 | 1.15 | 0.73 | 1.15 |
| Cash ratio | 0.04 | 0.03 | 0.08 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.03 | 0.07 | 0.07 | 0.84 | 0.84 | 0.73 | 0.73 |
Oxford Industries Inc's liquidity ratios provide insights into the company's ability to meet short-term obligations with its current assets. The company's current ratio has shown a fluctuating trend over the reporting periods, ranging from 1.18 to 1.89. The current ratio measures the company's ability to pay off its current liabilities with its current assets, with a higher ratio indicating better liquidity. Oxford Industries Inc's current ratio has generally been above 1, indicating that it has more current assets than current liabilities.
When looking at the quick ratio, which excludes inventory from current assets, we see a more volatile pattern ranging from 0.03 to 1.15. The quick ratio provides a more conservative measure of liquidity as it only includes the most liquid assets that can be quickly converted into cash to meet short-term obligations. A quick ratio below 1 may indicate potential issues with liquidity in the short term, as seen in some periods for Oxford Industries Inc.
Lastly, the cash ratio, which is the most stringent measure of liquidity, focuses only on cash and cash equivalents. Oxford Industries Inc's cash ratio ranged from 0.03 to 0.84. A higher cash ratio indicates a greater ability to cover short-term liabilities with the most liquid assets on hand. However, the company's cash ratio indicates an uneven level of liquidity over the reporting periods.
Overall, while Oxford Industries Inc has shown generally acceptable levels of liquidity based on the current ratio, the quick ratio and cash ratio suggest some periods of potential liquidity constraints that may require further monitoring and management.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Oxford Industries Inc has shown varying trends over the past few years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
From April 30, 2022, to May 31, 2022, the cash conversion cycle increased slightly from 53.56 days to 54.61 days. This may indicate a longer period between purchasing inventory and receiving cash from sales.
However, there was a significant improvement in the cycle between May 31, 2022, and July 30, 2022, as it decreased to 44.63 days. This suggests a quicker turnaround in converting assets into cash during this period.
The cycle increased significantly from August 31, 2022, to November 30, 2024, reaching a peak of 108.07 days in February 28, 2025. This prolonged cycle may indicate challenges in managing inventory, accounts receivable, and accounts payable efficiently, which could potentially impact the company's liquidity and working capital management.
Overall, Oxford Industries Inc should focus on optimizing its cash conversion cycle to enhance operational efficiency and maintain healthy financial performance.