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.