Ralph Lauren Corp Class A (RL)

Days of sales outstanding (DSO)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Receivables turnover 15.41 12.01 10.47 13.65 11.82 12.52 11.06 13.98 12.93 13.54 10.23 13.08 13.26 11.03 12.14 10.62 8.70 8.56 13.29 30.23
DSO days 23.69 30.38 34.86 26.74 30.88 29.15 32.99 26.10 28.23 26.95 35.68 27.91 27.53 33.08 30.07 34.36 41.96 42.62 27.46 12.07

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.41
= 23.69

Based on the data provided for Ralph Lauren Corp Class A, the days of sales outstanding (DSO) measure the average number of days it takes for the company to collect payments from its customers after making a sale.

Analyzing the trend in DSO over the reported periods, we observe fluctuations in the collection efficiency of the company. In June 2020, the DSO stood at 12.07 days, indicating a relatively efficient collection process. However, this number increased significantly to 42.62 days by December 2020, suggesting slower collections.

Subsequently, the DSO decreased to around 27-35 days between September 2021 and June 2022, which could indicate an improvement in collection efficiency. The DSO showed some fluctuations in the following periods but generally remained within the 27-35 day range, suggesting consistent performance in collecting payments.

Notably, the DSO decreased to 23.69 days by March 2025, indicating a shorter collection period compared to previous periods. This could suggest more effective credit and collections practices, prompt customer payments, or adjustments in sales terms.

Overall, monitoring the DSO metric is crucial for assessing the company's accounts receivable management and liquidity. A decreasing trend in DSO generally reflects a faster collection of receivables, contributing positively to the company's cash flow and financial health.