Ralph Lauren Corp Class A (RL)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	6,631,400	6,443,600	6,218,500	4,400,800	6,159,800
Total current assets	US$ in thousands	3,359,800	3,324,100	4,217,300	4,208,000	3,375,200
Total current liabilities	US$ in thousands	1,467,200	1,493,500	2,255,700	1,584,800	2,092,000
Working capital turnover		3.50	3.52	3.17	1.68	4.80

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,631,400K ÷ ($3,359,800K – $1,467,200K)
= 3.50

The working capital turnover ratio for Ralph Lauren Corp Class A has exhibited fluctuating trends over the past five years. In the fiscal year ending March 31, 2024, the ratio stood at 3.50, slightly lower than the previous year's figure of 3.52. This indicates that the company generated $3.50 in revenue for every dollar of working capital invested during the period, reflecting a relatively stable operational efficiency.

Comparing further back, in the fiscal year ending March 31, 2023, the working capital turnover ratio was marginally higher at 3.52. However, in the preceding fiscal year ending March 31, 2022, the ratio was notably lower at 3.17, suggesting a temporary decline in operational efficiency in converting working capital into revenue. This downtrend was more pronounced in the fiscal year ending March 31, 2021, with a working capital turnover ratio of 1.68, indicating potential liquidity challenges or inefficiencies in managing working capital.

Notably, in the fiscal year ending March 31, 2020, the working capital turnover ratio spiked to 4.80, signaling a significant improvement in operational efficiency and the company's ability to generate revenue relative to its working capital levels.

Overall, the varying trends in Ralph Lauren Corp Class A's working capital turnover ratio over the past five years suggest fluctuations in operational efficiency and effectiveness in utilizing working capital to drive revenue generation. Further analysis of the company's financial and operational performance is recommended to assess the underlying factors contributing to these trends.