Ralph Lauren Corp Class A (RL)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 2.44 2.15 1.89 1.90 2.13 1.81 1.76 1.83 2.12 2.17 2.05 2.25 2.03 1.98 2.11 2.76 3.40 2.69 2.40 2.47
Receivables turnover 14.00 15.26 13.32 17.03 13.47 13.90 — — 13.92 13.03 11.98 13.07 9.16 10.87 12.33 36.88 20.26 16.82 12.39 18.99
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
Working capital turnover 3.50 3.37 3.64 3.43 3.52 3.41 3.70 3.46 3.17 2.80 2.36 2.34 1.68 1.69 2.00 2.20 4.80 3.82 3.86 3.08

Ralph Lauren Corp Class A's inventory turnover has shown some fluctuations over the periods analyzed, ranging from 1.76 to 2.76. The ratio indicates how efficiently the company manages its inventory levels and converts them into sales. The average inventory turnover ratio of around 2.25 suggests that the company generally takes about 2.25 times per year to sell its inventory.

The receivables turnover ratio has also varied, with a range of 9.16 to 36.88. This ratio reflects how quickly the company collects its outstanding receivables from customers. A higher ratio indicates better efficiency in collecting receivables. The company's average receivables turnover of around 15.29 implies that it collects its receivables approximately 15 times a year.

In terms of payables turnover, the company's performance has fluctuated between 3.83 and 14.82. This ratio illustrates how efficiently the company manages its accounts payable by paying suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. The average payables turnover of approximately 6.08 implies that the company takes about 6.08 times per year to pay its suppliers.

Looking at the working capital turnover, the company's performance has ranged from 1.68 to 4.80. This ratio measures how effectively the company utilizes its working capital to generate sales. A higher working capital turnover ratio indicates more efficient utilization of working capital. The average working capital turnover of around 3.23 suggests that the company generates sales approximately 3.23 times for every dollar of working capital.

Overall, while there have been fluctuations in Ralph Lauren Corp Class A's activity ratios over the periods analyzed, the company generally demonstrates moderate efficiency in managing its inventory, receivables, payables, and working capital.

Average number of days

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
Days of inventory on hand (DOH) days 149.71 169.98 193.07 192.42 171.67 201.35 207.34 199.80 172.24 168.01 177.97 162.04 179.96 184.31 172.74 132.04 107.21 135.82 151.80 147.88
Days of sales outstanding (DSO) days 26.07 23.91 27.41 21.44 27.10 26.25 — — 26.23 28.02 30.47 27.93 39.84 33.57 29.61 9.90 18.02 21.71 29.45 19.22
Number of days of payables days 55.13 66.34 74.33 72.64 59.55 76.12 81.88 95.34 79.08 85.50 86.55 74.72 84.39 71.30 55.41 24.63 35.94 40.18 52.49 52.58

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. A lower number of days indicates quicker turnover of inventory, which is generally favorable. Ralph Lauren Corp Class A's DOH has varied over time, with a significant decrease from 2019 to 2020 before increasing again in recent quarters.

Days of sales outstanding (DSO) reflects how quickly a company collects revenue from credit sales. A lower DSO indicates faster collection of accounts receivable, which is preferable. Ralph Lauren Corp Class A's DSO has fluctuated, showing a decreasing trend from 2019 to 2020 and then increasing from 2020 to the most recent quarter.

Number of days of payables shows the average number of days a company takes to pay its suppliers. A longer number of days can indicate favorable cash flow management. Ralph Lauren Corp Class A's days of payables have also varied, with fluctuations over time but generally showing a decreasing trend in recent quarters.

In summary, Ralph Lauren Corp Class A's activity ratios suggest some level of fluctuation and variability in the management of inventory, collection of receivables, and payment to suppliers over the analyzed periods. Monitoring these ratios closely is important for assessing the company's operational efficiency and working capital management.

Long-term

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
Fixed asset turnover 7.80 7.55 7.43 6.93 6.74 6.78 7.13 6.80 6.41 6.20 5.77 5.43 4.34 4.04 5.11 5.52 6.29 6.22 6.30 6.43
Total asset turnover 1.00 0.94 0.97 0.94 0.95 0.91 0.95 0.91 0.81 0.74 0.68 0.66 0.56 0.54 0.61 0.67 0.85 0.86 0.88 0.86

The fixed asset turnover ratio for Ralph Lauren Corp Class A has shown some variability over the past few quarters, ranging from a low of 4.04 to a high of 7.80. This ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. Overall, the trend suggests that the company has been relatively consistent in generating sales from its fixed assets, with a notable improvement in recent quarters.

On the other hand, the total asset turnover ratio reflects how well the company is generating sales from all its assets. Ralph Lauren Corp Class A's total asset turnover ratio has also exhibited fluctuation, with values ranging from 0.54 to 1.00. The trend over the analyzed periods indicates a somewhat inconsistent performance in utilizing all assets to generate sales, with some quarters showing improvement and others showing a decline.

In conclusion, while the fixed asset turnover ratio has shown a more stable and improving trend, the total asset turnover ratio for Ralph Lauren Corp Class A has been more variable, potentially indicating areas for the company to focus on improving its overall asset utilization efficiency.