Oxford Industries Inc (OXM)

Return on equity (ROE)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	60,703	165,735	131,321	-95,692	68,493
Total stockholders’ equity	US$ in thousands	560,914	556,270	507,664	405,728	528,598
ROE		10.82%	29.79%	25.87%	-23.59%	12.96%

February 3, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $60,703K ÷ $560,914K
= 10.82%

Oxford Industries Inc's Return on Equity (ROE) has varied significantly over the past five years. The ROE for the fiscal year ending February 3, 2024, stood at 10.82%, which represents a decrease compared to the previous year's ROE of 29.79%. This decline indicates a decrease in the company's ability to generate profits from shareholders' equity during the most recent fiscal year.

Looking further back, the ROE for the fiscal year ending January 28, 2023, was relatively high at 29.79%, showing strong profitability and efficiency in utilizing shareholders' equity. The ROE for the fiscal year ending January 29, 2022, was also healthy at 25.87%, indicating consistent profitability over the years.

However, there was a significant downturn in ROE for the fiscal year ending January 30, 2021, where it stood at -23.59%. This negative ROE figure suggests that the company incurred losses during that fiscal year, possibly due to operational inefficiencies, high debt levels, or impairment charges.

In contrast, for the fiscal year ending February 1, 2020, the ROE rebounded to a positive 12.96%, indicating an improvement in profitability and efficiency in that particular year.

Overall, the trend in Oxford Industries Inc's ROE shows fluctuations, with periods of strong profitability followed by a significant decline and subsequent recovery. It is essential for the company to focus on enhancing operational efficiency, managing debt levels effectively, and maintaining consistent profitability to ensure sustainable long-term growth and shareholder value.