Ralph Lauren Corp Class A (RL)

Payables 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
Payables	US$ in thousands	436,000	332,200	371,600	448,700	355,900
Payables turnover		5.11	6.62	6.13	4.62	4.33

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,226,100K ÷ $436,000K
= 5.11

Ralph Lauren Corp Class A has exhibited a steady increase in its payables turnover ratio over the past five years, indicating an improvement in managing its accounts payable. The payables turnover ratio has increased from 4.33 in March 2021 to 5.11 in March 2025, with notable jumps in the years 2023 and 2024. This suggests that the company is able to pay off its suppliers more frequently within a given period, reflecting efficient liquidity management and possibly improved supplier relationships. Overall, the rising trend in payables turnover ratio demonstrates Ralph Lauren Corp Class A's ability to efficiently utilize its accounts payable to support its operations and maintain healthy working capital levels.