Ralph Lauren Corp Class A (RL)
Days of sales outstanding (DSO)
Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
---|---|---|---|---|---|---|
Receivables turnover | 15.41 | 11.82 | 12.93 | 13.26 | 8.70 | |
DSO | days | 23.69 | 30.88 | 28.23 | 27.53 | 41.96 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.41
= 23.69
The days of sales outstanding (DSO) for Ralph Lauren Corp Class A have shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable.
As of March 31, 2021, the DSO was 41.96 days, which decreased to 27.53 days by March 31, 2022. This substantial reduction suggests that the company was able to collect its receivables more quickly in the following year.
The decreasing trend continued in the subsequent years, with the DSO further dropping to 28.23 days by March 31, 2023, and 30.88 days by March 31, 2024. This downward trajectory indicates efficient management of accounts receivable and timely collection of sales proceeds.
By March 31, 2025, the DSO reached its lowest point of 23.69 days, reflecting an even stronger performance in collecting receivables and potentially improving the company's liquidity and working capital management.
Overall, the declining trend in DSO for Ralph Lauren Corp Class A suggests effective credit and collection policies, streamlined operations, and potential improvements in cash flow and overall financial health.
Peer comparison
Mar 31, 2025