Ralph Lauren Corp Class A (RL)

Current ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total current assets	US$ in thousands	3,789,900	3,359,800	3,324,100	4,217,300	4,208,000
Total current liabilities	US$ in thousands	2,133,700	1,467,200	1,493,500	2,255,700	1,584,800
Current ratio		1.78	2.29	2.23	1.87	2.66

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,789,900K ÷ $2,133,700K
= 1.78

The current ratio for Ralph Lauren Corp Class A has shown fluctuations over the past five years. As of March 31, 2021, the current ratio stood at a healthy level of 2.66, indicating the company had $2.66 in current assets for every $1 in current liabilities, reflecting strong liquidity. However, by March 31, 2022, the current ratio decreased to 1.87, suggesting a potential strain on the company's short-term liquidity position.

There was a slight improvement in the current ratio to 2.23 by March 31, 2023, and a further increase to 2.29 by March 31, 2024, signaling an enhancement in short-term liquidity. Nonetheless, as of March 31, 2025, the current ratio declined to 1.78, indicating a decrease in the company's ability to meet its short-term obligations with its current assets.

Overall, the trend in the current ratio for Ralph Lauren Corp Class A demonstrates variability, with fluctuations that may warrant further investigation into the company's management of its current assets and liabilities to ensure adequate liquidity in the future.