Ralph Lauren Corp Class A (RL)

Number of days of payables

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Payables turnover		6.62	6.13	4.62	4.33	10.16
Number of days of payables	days	55.13	59.55	79.08	84.39	35.94

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.62
= 55.13

The number of days of payables for Ralph Lauren Corp Class A has exhibited variation over the past five years. It is notable that the company's days of payables have decreased from 84.39 days in March 2021 to 55.13 days in March 2024. This indicates that the company is taking fewer days to pay its suppliers compared to the previous year, potentially improving its cash flow position.

The trend in the number of days of payables suggests that Ralph Lauren Corp Class A has been managing its payables more efficiently over the years. A decreasing trend in days of payables can indicate better working capital management, stronger supplier relationships, or improved bargaining power with suppliers.

It is important to note that a low number of days of payables can sometimes raise concerns about the company's ability to meet short-term obligations or its relationship with suppliers. However, in this case, the decreasing trend in days of payables coupled with the overall decrease in the days suggests a positive improvement in the company's operational efficiency.

Overall, the downward trend in Ralph Lauren Corp Class A's number of days of payables indicates an improvement in managing its payables, potentially contributing to better overall financial health and cash flow management.