Oxford Industries Inc (OXM)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	80,982	202,545	215,400	223,097	218,774	210,671	213,963	206,588	165,503	116,871	72,546	-3,467	-123,849	-86,144	-69,832	-21,556	93,675	94,596	95,707	91,961
Total assets	US$ in thousands	1,097,840	1,162,160	1,149,860	1,194,230	1,188,660	1,140,320	957,202	947,017	957,642	932,803	931,749	900,982	865,634	902,017	952,549	1,097,470	1,033,370	1,013,080	1,010,190	1,024,420
Operating ROA		7.38%	17.43%	18.73%	18.68%	18.41%	18.47%	22.35%	21.81%	17.28%	12.53%	7.79%	-0.38%	-14.31%	-9.55%	-7.33%	-1.96%	9.07%	9.34%	9.47%	8.98%

February 3, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $80,982K ÷ $1,097,840K
= 7.38%

Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating operating profits relative to its total assets. Looking at the operating ROA trend for Oxford Industries Inc over the past two years, there seems to be some volatility in the performance.

Between May 2019 and Apr 2020, the operating ROA fluctuated within a relatively narrow range, showing stability in the company's operational efficiency. However, from May 2020 to Jul 2021, there was a significant decline in operating ROA, with the ratio even turning negative in Jan 2021 and Oct 2021. This suggests challenges or disruptions in the company's operations during this period.

Subsequently, there was a notable recovery in operating ROA from Jul 2021 to Feb 2024, reaching a peak of 22.35% in Jul 2022. This indicates improved efficiency in generating operating income relative to its assets. Despite fluctuations, the operating ROA has generally shown an upward trend since Jul 2021.

It is essential for stakeholders to closely monitor Oxford Industries Inc's operating ROA to assess the company's operational performance and efficiency in utilizing its assets to generate profits. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's operational strengths and areas for improvement.