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.
Peer comparison
Mar 31, 2025