Ralph Lauren Corp Class A (RL)

Payables 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
Payables	US$ in thousands	332,200	371,600	448,700	355,900	246,800
Payables turnover		6.62	6.13	4.62	4.33	10.16

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,199,600K ÷ $332,200K
= 6.62

The payables turnover ratio for Ralph Lauren Corp Class A has shown fluctuations over the past five years. The ratio has ranged from 4.33 to 10.16, indicating varying efficiency in managing its accounts payable during this period. In particular, there was a significant improvement in payables turnover from 2020 to 2021, but this improvement was followed by a decline in 2022 and 2023 before increasing again in 2024.

A high payables turnover ratio suggests that the company is paying off its suppliers quickly and efficiently, which may indicate strong liquidity or effective working capital management. Conversely, a low payables turnover ratio could imply delays in paying suppliers or potential liquidity issues.

Overall, the trend in Ralph Lauren Corp Class A's payables turnover ratio should be considered along with other financial metrics to assess the company's operational efficiency and financial health comprehensively.