Oxford Industries Inc (OXM)

Quick ratio

Feb 28, 2025 Feb 29, 2024 Feb 3, 2024 Feb 28, 2023 Jan 28, 2023
Cash US$ in thousands 9,470 7,604 7,604 8,826 8,826
Short-term investments US$ in thousands — — — 0 0
Receivables US$ in thousands — — 82,911 — 63,426
Total current liabilities US$ in thousands 248,275 240,644 240,644 269,639 269,639
Quick ratio 0.04 0.03 0.38 0.03 0.27

February 28, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,470K + $—K + $—K) ÷ $248,275K
= 0.04

The quick ratio, also known as the acid-test ratio, measures Oxford Industries Inc's ability to meet its short-term obligations with its most liquid assets. Looking at the historical trend of the quick ratio over several periods reveals fluctuations in the company's liquidity position.

As of January 28, 2023, the quick ratio stood at 0.27, indicating that Oxford Industries had $0.27 of highly liquid assets to cover each $1 of current liabilities. This suggests a relatively weaker liquidity position at the start of the period.

By February 28, 2023, the quick ratio notably dropped to 0.03, reflecting a sharp decline in liquidity and raising concerns about the company's ability to meet short-term obligations promptly.

However, as of February 3, 2024, the quick ratio improved to 0.38, indicating an enhancement in liquidity levels and a more favorable position to cover immediate liabilities.

The quick ratio then decreased to 0.03 by February 29, 2024, signaling a decline in liquidity back to a concerning level, potentially posing challenges in meeting short-term obligations.

Finally, by February 28, 2025, the quick ratio rose slightly to 0.04, which, although still low, indicates some improvement in Oxford Industries' liquidity position compared to the prior period.

Overall, the fluctuating trend of the quick ratio suggests varying levels of liquidity for Oxford Industries Inc over the analyzed periods, emphasizing the importance of closely monitoring and managing the company's short-term financial obligations and liquid asset levels.