Ralph Lauren Corp Class A (RL)

Inventory turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	2,226,100	2,199,600	2,277,800	2,071,000	1,539,400
Inventory	US$ in thousands	949,600	902,200	1,071,300	977,300	759,000
Inventory turnover		2.34	2.44	2.13	2.12	2.03

March 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,226,100K ÷ $949,600K
= 2.34

The inventory turnover ratio of Ralph Lauren Corp Class A has shown a gradual increase over the past five years. The ratio was 2.03 as of March 31, 2021, and has steadily improved to 2.34 as of March 31, 2025. This indicates that the company is managing its inventory more efficiently, with a higher turnover rate, which is generally a positive sign of effective inventory management. The upward trend in inventory turnover suggests that Ralph Lauren Corp Class A is successfully managing its inventory levels, aligning production with sales demand, and minimizing excess inventory holding costs.