Oxford Industries Inc (OXM)

Return on total capital

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	80,982	218,774	165,503	-123,849	93,675
Long-term debt	US$ in thousands	29,304	119,011	—	—	—
Total stockholders’ equity	US$ in thousands	560,914	556,270	507,664	405,728	528,598
Return on total capital		13.72%	32.40%	32.60%	-30.53%	17.72%

February 3, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $80,982K ÷ ($29,304K + $560,914K)
= 13.72%

Oxford Industries Inc's return on total capital has fluctuated over the past five years. In February 2024, the return on total capital was 13.72%, showing a decrease from the previous year's figure of 32.40%. This decline suggests a possible decrease in the company's efficiency in generating profits from its total capital employed.

The relatively high return on total capital in 2022 and 2023, at 32.60% and 32.40% respectively, indicates that the company was effectively utilizing its capital to generate profits during those periods. However, the negative return on total capital in January 2021 (-30.53%) is a concerning anomaly that suggests the company may have incurred significant losses compared to its capital base.

Overall, while there have been fluctuations in Oxford Industries Inc's return on total capital, a trend of relatively strong performance can be observed in recent years, except for the negative anomaly in 2021. Monitoring the company's ability to maintain and improve its return on total capital will be crucial for assessing its financial health and efficiency in utilizing its capital resources.