Ralph Lauren Corp Class A (RL)

Receivables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	7,079,000	6,631,400	6,443,600	6,218,500	4,400,800
Receivables	US$ in thousands	459,500	561,000	498,400	469,100	505,900
Receivables turnover		15.41	11.82	12.93	13.26	8.70

March 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,079,000K ÷ $459,500K
= 15.41

The receivables turnover of Ralph Lauren Corp Class A has shown a positive trend over the past five years, increasing from 8.70 in March 31, 2021, to 15.41 in March 31, 2025. This indicates that the company is able to convert its accounts receivable into cash at a faster rate.

A higher receivables turnover ratio is generally considered favorable as it suggests that the company is efficiently managing its credit sales and collecting payments from customers promptly.

The consistent improvement in the receivables turnover ratio is a positive sign of the company's effective credit and collection policies, which is crucial for maintaining healthy cash flow and financial stability. It also indicates the strong customer base and potentially efficient credit risk assessment processes in place.

Overall, the upward trend in Ralph Lauren Corp Class A's receivables turnover ratio reflects sound financial management and operational efficiency in handling its accounts receivable.