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.