Ralph Lauren Corp Class A (RL)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	3,359,800	3,324,100	4,217,300	4,208,000	3,375,200
Total current liabilities	US$ in thousands	1,467,200	1,493,500	2,255,700	1,584,800	2,092,000
Current ratio		2.29	2.23	1.87	2.66	1.61

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,359,800K ÷ $1,467,200K
= 2.29

The current ratio of Ralph Lauren Corp Class A has exhibited fluctuations over the last five years. As of March 31, 2024, the company's current ratio stands at 2.29, indicating that for every dollar of current liabilities, the company has $2.29 of current assets available to cover those obligations.

Comparing this ratio to previous years, we observe a generally increasing trend from 2020 to 2021, followed by a decrease in 2022, before rising again in 2023 and 2024.

A current ratio above 1 suggests that Ralph Lauren Corp Class A possesses more than enough current assets to meet its short-term obligations. The current ratio of 2.29 as of March 31, 2024, indicates a healthy liquidity position for the company, providing a strong buffer against potential short-term financial challenges.

However, it is essential to consider other factors and delve deeper into the financial statements to gain a comprehensive understanding of the company's liquidity position and its ability to manage short-term obligations effectively.