Ralph Lauren Corp Class A (RL)

Payables 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
Payables US$ in thousands 436,000 489,500 495,700 477,800 332,200 411,800 460,100 448,400 371,600 468,000 498,000 562,100 448,700 472,800 451,400 370,300 355,900 335,000 284,500 144,200
Payables turnover 5.11 4.53 4.42 4.57 6.62 5.50 4.91 5.02 6.13 4.80 4.46 3.83 4.62 4.27 4.22 4.88 4.33 5.12 6.59 14.82

March 31, 2025 calculation

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

The payables turnover ratio provides insight into the efficiency of Ralph Lauren Corp Class A in managing its accounts payable. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which may suggest good relationships with vendors or effective working capital management.

Analyzing the data provided, we observe fluctuations in the payables turnover ratio over the periods. From June 30, 2020, to March 31, 2021, the ratio steadily decreased from 14.82 to 4.33, indicating a sharp decline in the frequency of paying suppliers. This significant drop may signal potential issues in managing accounts payable effectively or changes in the company's payment practices.

Subsequently, from March 31, 2021, to June 30, 2024, the payables turnover ratio fluctuated within a range of 3.83 to 6.62, showing some variability in the company's payment patterns. Notably, the ratio peaked at 6.62 on March 31, 2024, possibly reflecting improved efficiency in managing payables during that period.

Overall, the trend in the payables turnover ratio for Ralph Lauren Corp Class A suggests varying levels of efficiency in managing its accounts payable over the analyzed periods. Further analysis of the company's financial statements and business operations would be necessary to better understand the factors contributing to these fluctuations and determine their implications for the company's financial health and operational performance.


Peer comparison

Mar 31, 2025