Ralph Lauren Corp Class A (RL)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	155.70	149.71	171.67	172.24	179.96
Days of sales outstanding (DSO)	days	23.69	30.88	28.23	27.53	41.96
Number of days of payables	days	71.49	55.13	59.55	79.08	84.39
Cash conversion cycle	days	107.90	125.46	140.35	120.70	137.54

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 155.70 + 23.69 – 71.49
= 107.90

The cash conversion cycle of Ralph Lauren Corp Class A has shown fluctuations over the past five years. Starting at 137.54 days on March 31, 2021, the company managed to reduce this metric to 120.70 days by March 31, 2022. However, in the following year, the cycle increased to 140.35 days before decreasing again to 125.46 days by March 31, 2024. The most recent data as of March 31, 2025, reflects a further improvement to 107.90 days.

These figures indicate the efficiency of Ralph Lauren Corp in managing its cash flows related to inventory, accounts receivable, and accounts payable over the analyzed period. Overall, the trend suggests that the company has successfully optimized its cash conversion cycle in recent years, indicating potentially improved working capital management.