Ralph Lauren Corp Class A (RL)

Liquidity ratios

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 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 1.61 1.94 1.95 2.30
Quick ratio 1.54 1.40 1.21 1.29 1.37 1.23 0.83 1.02 1.35 1.42 1.56 1.59 2.06 1.90 1.82 1.92 1.16 1.29 1.21 1.42
Cash ratio 1.22 1.14 0.91 1.05 1.05 0.97 0.83 1.02 1.15 1.23 1.35 1.40 1.75 1.66 1.57 1.82 1.01 1.07 0.92 1.21

Ralph Lauren Corp Class A's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 2, indicating a strong liquidity position. However, there was a slight dip in the current ratio in the most recent quarter compared to the previous quarters.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also fluctuated but generally remained above 1, suggesting that Ralph Lauren Corp Class A has an adequate ability to meet its short-term obligations without relying on inventory.

The cash ratio, which specifically assesses the company's ability to cover its current liabilities with its cash and cash equivalents, has shown variations as well. It displayed a similar trend to the quick ratio, indicating that Ralph Lauren Corp Class A has maintained a reasonable level of cash reserves to meet its short-term financial obligations.

Overall, the liquidity ratios suggest that Ralph Lauren Corp Class A has managed its liquidity well, with sufficient current assets to cover its short-term liabilities. However, monitoring fluctuations in these ratios is important to ensure continued financial stability and flexibility.

Additional liquidity measure

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 120.66 127.55 146.14 141.22 139.22 151.48 125.45 104.46 119.39 110.53 121.89 115.25 135.42 146.58 146.94 117.32 89.29 117.35 128.76 114.52

The cash conversion cycle of Ralph Lauren Corp Class A has shown fluctuations over the past few quarters. The cycle represents the time taken to convert raw materials into cash from sales. A shorter cycle indicates efficient management of working capital.

In the latest quarter ending March 31, 2024, the cash conversion cycle was 120.66 days, showing an improvement compared to the previous quarter. However, it is still higher than the cycle observed in June and September 2022.

The company managed to reduce its cycle by around 6.89 days from December 31, 2023, to March 31, 2024. This reduction could be attributed to improved inventory turnover, faster collection of accounts receivable, or extended payment terms with suppliers.

Analyzing trends over multiple quarters reveals fluctuations in the cash conversion cycle, with some periods showing longer cycles than others. Despite the variations, the company should aim to consistently reduce the cycle to enhance liquidity and operational efficiency. Tracking this metric can provide insights into the company's working capital management strategies and overall financial health.