Ralph Lauren Corp Class A (RL)

Working capital 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
Revenue (ttm)	US$ in thousands	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	6,159,800	6,391,400	6,366,500	6,351,200
Total current assets	US$ in thousands	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	3,375,200	3,448,900	3,386,700	3,654,100
Total current liabilities	US$ in thousands	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	2,092,000	1,775,400	1,736,000	1,591,000
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 demonstrated fluctuations over the past several quarters. The ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio signifies that the company is effectively using its working capital to support its operations and drive sales.

From the data provided, we observe that the working capital turnover ratio ranged from a low of 1.68 in the first quarter of 2021 to a high of 4.80 in the first quarter of 2020. The ratio showed an increasing trend from the beginning of 2020 until the third quarter of 2020, reaching a peak at 4.80. However, in the following quarters, the ratio fluctuated, with occasional peaks and declines.

Overall, the working capital turnover ratio for Ralph Lauren Corp Class A has exhibited variability. It is essential for the company to closely monitor this ratio to ensure efficient utilization of working capital and strive for consistency in generating sales relative to its working capital levels.