Ralph Lauren Corp Class A (RL)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 14.00 | 15.26 | 13.32 | 17.03 | 13.47 | 13.90 | — | — | 13.92 | 13.03 | 11.98 | 13.07 | 9.16 | 10.87 | 12.33 | 36.88 | 20.26 | 16.82 | 12.39 | 18.99 | |
| DSO | days | 26.07 | 23.91 | 27.41 | 21.44 | 27.10 | 26.25 | — | — | 26.23 | 28.02 | 30.47 | 27.93 | 39.84 | 33.57 | 29.61 | 9.90 | 18.02 | 21.71 | 29.45 | 19.22 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.00
= 26.07
Days Sales Outstanding (DSO) is a financial metric that indicates the average number of days it takes for a company to collect payment after making a sale. Analyzing the DSO trend for Ralph Lauren Corp Class A reveals fluctuations in the efficiency of its accounts receivable management over time.
From the data provided, we can observe that the DSO for Ralph Lauren Corp Class A has been relatively stable in recent quarters, with values ranging from around 20 to 30 days. In the most recent period ending March 31, 2024, the DSO stood at 26.07 days, showing a slight increase from the previous quarter's 23.91 days.
The DSO trend can provide insights into the company's credit policies, collection efficiency, and potential cash flow issues. A decreasing DSO suggests efficient accounts receivable management, while an increasing trend may indicate difficulties in collecting payments promptly.
In the case of Ralph Lauren Corp Class A, the various fluctuations in DSO over the past quarters may reflect changes in customer payment behaviors, seasonal impacts on sales, or alterations in the company's credit terms. It is essential for the company to closely monitor and manage its DSO to ensure timely collection of receivables and maintain healthy cash flow.
Overall, while Ralph Lauren Corp Class A has shown some fluctuations in its DSO metric, the relatively stable trend in recent quarters indicates a reasonable level of efficiency in managing its accounts receivable. Nonetheless, further analysis and monitoring of DSO trends are recommended to ensure continued financial health and effective working capital management.
Peer comparison
Mar 31, 2024