Oxford Industries Insights: Return On Capital Employed

Oxford Industries OXM showed a loss in earnings since Q4, totaling $34.89 million. Sales, on the other hand, increased by 20.05% to $265.76 million during Q1. In Q4, Oxford Industries brought in $221.37 million in sales but lost $16.62 million in earnings.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in Oxford Industries's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, Oxford Industries posted an ROCE of 0.08%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In Oxford Industries's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q1 Earnings Insight

Oxford Industries reported Q1 earnings per share at $1.89/share, which beat analyst predictions of $1.05/share.