Oxford Industries Inc (OXM)

Debt-to-equity ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
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
Debt-to-equity ratio		0.05	0.21	0.00	0.00	0.00

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $29,304K ÷ $560,914K
= 0.05

The debt-to-equity ratio for Oxford Industries Inc has shown a significant increase over the years, indicating a shift towards a higher level of debt relative to equity in the company's capital structure. In February 2024, the debt-to-equity ratio stands at 0.05, which is a notable rise from the previous year's ratio of 0.21. This suggests that the company has reduced its reliance on debt financing and is now more balanced in terms of debt and equity.

Comparing the latest ratio to the ratios from 2022, 2021, and 2020, where the ratio was 0.00, we see a clear trend of increasing leverage in the company's financial structure. This sudden shift in 2023 might indicate a strategic decision to take on more debt to fund growth opportunities or for other reasons.

It is important to note that a low debt-to-equity ratio does not necessarily indicate financial instability, as it could reflect a conservative financing approach. However, a sudden increase in the ratio, as seen in Oxford Industries Inc's case, could signal a change in the company's capital allocation strategy and should be monitored closely for its impact on financial risk and performance.