Ralph Lauren Corp Class A (RL)

Working capital 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
Revenue (ttm)	US$ in thousands	7,079,000	6,949,600	6,740,100	6,647,100	6,631,400	6,604,300	6,502,600	6,449,500	6,443,600	6,425,500	6,408,600	6,332,800	6,218,500	5,982,800	5,600,200	5,289,600	4,400,800	4,387,900	4,705,800	5,218,500
Total current assets	US$ in thousands	3,789,900	3,900,300	3,604,600	3,447,900	3,359,800	3,639,400	3,394,500	3,473,100	3,324,100	3,631,300	3,440,600	3,577,500	4,217,300	4,567,300	4,632,700	4,378,200	4,208,000	4,276,400	3,907,100	3,857,000
Total current liabilities	US$ in thousands	2,133,700	2,221,800	2,092,400	1,573,600	1,467,200	1,678,200	1,610,400	1,593,700	1,493,500	1,749,600	1,709,600	1,745,400	2,255,700	2,429,600	2,260,600	2,113,300	1,584,800	1,676,800	1,553,700	1,486,900
Working capital turnover		4.27	4.14	4.46	3.55	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

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,079,000K ÷ ($3,789,900K – $2,133,700K)
= 4.27

Working capital turnover is a financial ratio that measures how efficiently a company is able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its sales activities.

Analyzing the working capital turnover trend of Ralph Lauren Corp Class A based on the provided data, we observe a consistent improvement in the ratio over the reporting periods. The ratio has shown a steady increase from 2.20 in June 2020 to 4.27 in March 2025.

The increasing trend in the working capital turnover ratio suggests that Ralph Lauren Corp Class A has been able to optimize its working capital more efficiently over time to generate sales. This improvement may indicate better inventory management, faster collection of receivables, or more efficient utilization of payables.

A high working capital turnover ratio reflects that the company is effectively utilizing its working capital resources to support its operations and drive revenue growth. However, it is essential for investors and analysts to further investigate the components of working capital to understand the underlying reasons behind the changes in the ratio and assess the company's overall financial health and operational efficiency.