Ralph Lauren Corp Class A (RL)

Over the past five years, Ralph Lauren Corp Class A has demonstrated varying levels of efficiency in collecting its accounts receivable, as indicated by its days of sales outstanding (DSO) ratio.

In fiscal year 2020, the company had a relatively low DSO of 18.02 days, implying that it collected its accounts receivable quickly, potentially indicating effective credit management and strong customer payment practices. This improved efficiency in AR collection may have positively impacted the company's cash flow and liquidity position.

However, in fiscal year 2021, the DSO ratio increased significantly to 39.84 days, suggesting a lengthening in the collection period for accounts receivable. This longer DSO could indicate potential challenges in collecting payments from customers promptly, which may have had implications on the company's cash flow and working capital management.

Subsequently, in fiscal years 2022 and 2023, Ralph Lauren Corp Class A managed to reduce its DSO ratio to 26.23 days and 27.10 days, respectively. This improvement in DSO reflects a more efficient accounts receivable collection process compared to the previous year.

For the most recent fiscal year, ending March 31, 2024, the DSO ratio further decreased to 26.07 days, indicating continued effectiveness in managing accounts receivable and potentially enhancing the company's cash flow and liquidity position.

Overall, fluctuations in Ralph Lauren Corp Class A's DSO ratio over the five-year period suggest varying levels of efficiency in managing accounts receivable and collecting payments from customers, with recent improvements potentially contributing to enhanced financial performance and liquidity.

Peer comparison

Mar 31, 2024