Ralph Lauren Corp Class A (RL)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 155.70 164.31 188.08 173.86 149.71 169.98 193.11 192.42 171.67 201.42 207.40 199.83 172.24 168.01 177.97 162.04 179.96 184.31 172.74 132.04
Days of sales outstanding (DSO) days 23.69 30.38 34.86 26.74 30.88 29.15 32.99 26.10 28.23 26.95 35.68 27.91 27.53 33.08 30.07 34.36 41.96 42.62 27.46 12.07
Number of days of payables days 71.49 80.54 82.66 79.94 55.13 66.34 74.33 72.64 59.55 76.12 81.88 95.34 79.08 85.50 86.55 74.72 84.39 71.30 55.41 24.63
Cash conversion cycle days 107.90 114.15 140.28 120.66 125.46 132.79 151.77 145.88 140.35 152.25 161.20 132.41 120.70 115.59 121.49 121.68 137.54 155.63 144.79 119.49

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 displayed fluctuations over the past few years. It measures the time it takes for the company to convert its investments in inventory into cash flows from sales.

From June 2020 to March 2021, the cash conversion cycle ranged from 119.49 days to 155.63 days, indicating some inconsistency in managing inventory and collecting receivables.

Subsequently, from June 2021 to June 2022, the cycle showed an improving trend, decreasing to a range of 121.49 days to 132.41 days, suggesting enhanced efficiency in managing working capital.

However, the cycle increased notably in the following quarters, reaching a peak of 161.20 days in September 2022, which may imply challenges in inventory turnover and accounts receivable collection during this period.

From March 2023 to March 2025, there was a general decreasing trend in the cash conversion cycle, indicating a potential focus on optimizing working capital and improving cash flow efficiency.

Overall, monitoring and managing the cash conversion cycle closely is crucial for Ralph Lauren Corp Class A to ensure effective utilization of resources, timely collection of receivables, and efficient inventory management.


Peer comparison

Mar 31, 2025