Ralph Lauren Corp Class A (RL)

Short-term

Turnover ratios

Ralph Lauren Corp Class A's inventory turnover has shown a slight improvement over the years, increasing from 2.03 in 2021 to 2.34 in 2025. This indicates that the company is efficiently managing its inventory by selling its products more frequently within each year.

In terms of receivables turnover, Ralph Lauren Corp Class A has demonstrated a significant increase in efficiency, with the ratio rising from 8.70 in 2021 to 15.41 in 2025. This suggests that the company is collecting its accounts receivable at a faster pace, which is a positive indicator of effective credit management and liquidity.

The payables turnover ratio for Ralph Lauren Corp Class A has fluctuated over the years, with a peak at 6.62 in 2024. This indicates that the company is taking longer to pay its suppliers over time compared to 2021 when the ratio was 4.33. However, the ratio decreased to 5.11 in 2025, suggesting a slight improvement in payables management efficiency.

Regarding the working capital turnover ratio, there has been a consistent upward trend from 1.68 in 2021 to 4.27 in 2025. This indicates that the company is generating more revenue per unit of working capital invested, which reflects efficient utilization of its working capital to generate sales.

Overall, Ralph Lauren Corp Class A's activity ratios suggest improvements in inventory turnover, receivables turnover, and working capital turnover, although payables turnover has shown some fluctuation. These ratios provide valuable insights into the company's operational efficiency and effectiveness in managing its resources.

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Average number of days

Based on the provided data for Ralph Lauren Corp Class A, the activity ratios can provide insights into the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand indicates how many days it takes for the company to sell its inventory. A decreasing trend in this ratio from 179.96 days in 2021 to 155.70 days in 2025 suggests that Ralph Lauren Corp managed its inventory more efficiently over the years. This could be due to better inventory management practices or changes in product demand.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding represents the average number of days it takes for the company to collect payment after a sale. A declining trend from 41.96 days in 2021 to 23.69 days in 2025 indicates that Ralph Lauren Corp improved its collection efficiency. This could be attributed to more effective credit policies or enhanced customer relations.

3. Number of Days of Payables:
- The Number of Days of Payables shows how long the company takes to pay its suppliers. A decreasing trend in this ratio from 84.39 days in 2021 to 71.49 days in 2025 signifies that Ralph Lauren Corp is taking longer to pay its suppliers. This may indicate negotiations for better terms with suppliers or changes in payment processing.

By analyzing these activity ratios, we can see that Ralph Lauren Corp Class A has been improving its operational efficiency, particularly in managing inventory, collecting payments, and managing payables. These improvements suggest enhanced operational effectiveness and financial performance over the years.

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Long-term

The analysis of Ralph Lauren Corp Class A's long-term activity ratios reveals notable trends in its performance. The Fixed Asset Turnover ratio has shown significant improvement over the years, increasing from 1.95 in March 31, 2021, to 6.74 in March 31, 2023. This indicates that the company has become more efficient in generating sales revenue relative to its investment in fixed assets.

Similarly, the Total Asset Turnover ratio has also shown a positive trend, increasing from 0.56 in March 31, 2021, to 1.00 in March 31, 2024 and 2025. This implies that Ralph Lauren Corp Class A has been able to generate more sales revenue compared to its total assets, which is a positive sign of operational efficiency and effective asset utilization.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Ralph Lauren Corp Class A has been effectively managing its assets to drive sales growth and improve operational performance over the years.