Ralph Lauren Corp Class A (RL)

Payables turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	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	2,506,500	2,431,000	2,435,700	2,440,100
Payables	US$ in thousands	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	246,800	267,600	350,300	351,500
Payables turnover		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	10.16	9.08	6.95	6.94

March 31, 2024 calculation

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

The payables turnover ratio measures how efficiently a company manages its trade payables by analyzing how many times during a period the company pays off its average accounts payable balance. A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently.

For Ralph Lauren Corp Class A, the payables turnover ratio has shown variability over the past few quarters. In Q1 2024, the payables turnover ratio was 6.62, indicating that the company paid off its accounts payable approximately 6.62 times during that quarter. This marks an improvement from the previous quarter but is slightly lower than the ratio recorded in the same quarter last year.

Overall, the trend in the payables turnover ratio for Ralph Lauren Corp Class A has been fluctuating, with some quarters showing higher turnover ratios than others. It is essential to monitor this ratio over time to assess the company's liquidity management and its relationships with suppliers.