Oxford Industries Inc (OXM)

Financial leverage ratio

		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
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
Total stockholders’ equity	US$ in thousands	560,914	627,113	624,629	607,425	556,270	533,039	534,016	513,420	507,664	495,469	473,699	427,901	405,728	418,946	431,550	438,695	528,598	516,816	518,949	493,172
Financial leverage ratio		1.96	1.85	1.84	1.97	2.14	2.14	1.79	1.84	1.89	1.88	1.97	2.11	2.13	2.15	2.21	2.50	1.95	1.96	1.95	2.08

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,097,840K ÷ $560,914K
= 1.96

The financial leverage ratio of Oxford Industries Inc has exhibited fluctuations over the past few quarters, ranging from a low of 1.79 to a high of 2.50. The ratio measures how much the company relies on debt to finance its assets, with values above 1 indicating a higher reliance on debt.

The ratio reached its peak in the most recent quarter at 2.50, which suggests that the company's level of debt compared to its equity has increased significantly. This may indicate higher financial risk as higher debt levels can lead to increased interest expenses and potential challenges in meeting debt obligations.

Conversely, the ratio has shown some variability during the period, with fluctuations both upwards and downwards. A moderate degree of leverage can enhance returns for shareholders when the company is performing well, but it also increases the risk of financial distress if the company faces economic downturns or challenges in generating sufficient cash flows to cover its debt obligations.

Overall, the trend in Oxford Industries Inc's financial leverage ratio indicates that the company has been managing its debt levels at varying degrees over the recent quarters, and stakeholders should closely monitor any further changes to assess the company's financial health and risk profile.