Ralph Lauren Corp Class A (RL)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,226,100	2,218,300	2,188,900	2,181,500	2,199,600	2,265,600	2,259,200	2,253,100	2,277,800	2,244,200	2,219,900	2,152,000	2,071,000	2,018,500	1,903,600	1,808,800	1,539,400	1,715,000	1,874,200	2,137,300
Inventory	US$ in thousands	949,600	998,600	1,127,900	1,039,100	902,200	1,055,100	1,195,300	1,187,800	1,071,300	1,238,400	1,261,400	1,178,200	977,300	929,100	928,200	803,000	759,000	866,000	887,000	773,200
Inventory turnover		2.34	2.22	1.94	2.10	2.44	2.15	1.89	1.90	2.13	1.81	1.76	1.83	2.12	2.17	2.05	2.25	2.03	1.98	2.11	2.76

March 31, 2025 calculation

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

The inventory turnover ratio of Ralph Lauren Corp Class A has fluctuated over the past few years, indicating varying efficiency in managing and selling its inventory. From June 30, 2020, to March 31, 2025, the inventory turnover ratio ranged from a low of 1.76 to a high of 2.76.

Overall, the trend shows a general decline in the inventory turnover ratio, suggesting potential issues with inventory management efficiency. However, there were periods of improvement, such as in March 31, 2024, and June 30, 2024, where the ratio increased notably.

It is important for Ralph Lauren Corp Class A to closely monitor and analyze its inventory turnover ratio to ensure optimal inventory levels and efficient utilization of resources. Further investigation into the causes of fluctuations in the ratio can help identify areas for improvement in inventory management practices.