Ralph Lauren Corp Class A (RL)

Current ratio

		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
Total current assets	US$ in thousands	3,789,900	3,900,300	3,604,600	3,447,900	3,359,800	3,639,400	3,394,500	3,473,100	3,324,100	3,631,300	3,440,600	3,577,500	4,217,300	4,567,300	4,632,700	4,378,200	4,208,000	4,276,400	3,907,100	3,857,000
Total current liabilities	US$ in thousands	2,133,700	2,221,800	2,092,400	1,573,600	1,467,200	1,678,200	1,610,400	1,593,700	1,493,500	1,749,600	1,709,600	1,745,400	2,255,700	2,429,600	2,260,600	2,113,300	1,584,800	1,676,800	1,553,700	1,486,900
Current ratio		1.78	1.76	1.72	2.19	2.29	2.17	2.11	2.18	2.23	2.08	2.01	2.05	1.87	1.88	2.05	2.07	2.66	2.55	2.51	2.59

March 31, 2025 calculation

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

The current ratio of Ralph Lauren Corp Class A has displayed fluctuations over the observed period. The ratio stood at 2.59 as of June 30, 2020, indicating the company had $2.59 in current assets to cover each dollar of current liabilities. This ratio slightly decreased to 2.51 by September 30, 2020, and further fluctuated but generally remained above 2.

However, a notable decrease in the current ratio was observed in the latter part of the data series, with the ratio dropping to 1.72 by September 30, 2024. This suggests a decline in the company's ability to meet its short-term obligations with its current assets during that period. Despite some fluctuations, the current ratio recovered slightly to 1.78 by March 31, 2025.

Overall, the current ratio of Ralph Lauren Corp Class A indicates variations in its short-term liquidity position over time. It is essential for the company to carefully manage its current assets and liabilities to ensure it can meet its short-term financial obligations efficiently.