Ralph Lauren Corp Class A (RL)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	2,199,600	2,277,800	2,071,000	1,539,400	2,506,500
Inventory	US$ in thousands	902,200	1,071,300	977,300	759,000	736,200
Inventory turnover		2.44	2.13	2.12	2.03	3.40

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,199,600K ÷ $902,200K
= 2.44

The inventory turnover of Ralph Lauren Corp Class A has been fairly consistent over the past five years. The ratio has ranged from 2.03 to 3.40, indicating that the company has been able to effectively manage its inventory levels and convert them into sales. A higher inventory turnover generally suggests that the company is efficiently selling its products and restocking at an appropriate rate.

In the most recent year, ending March 31, 2024, the inventory turnover was 2.44, which is higher than the previous two years but slightly lower than the peak in 2020. This may indicate a slight improvement in inventory management efficiency during the latest fiscal year.

Overall, Ralph Lauren Corp Class A's inventory turnover ratio suggests that the company has been effectively managing its inventory levels relative to its sales over the past five years. It is essential to continue monitoring this ratio to ensure optimal inventory management going forward.