Ralph Lauren Corp Class A (RL)

Quick ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cash US$ in thousands 1,922,500 1,662,200 1,529,300 1,863,800 2,579,000
Short-term investments US$ in thousands 160,500 121,000 36,400 734,600 197,500
Receivables US$ in thousands 459,500 561,000 498,400 469,100 505,900
Total current liabilities US$ in thousands 2,133,700 1,467,200 1,493,500 2,255,700 1,584,800
Quick ratio 1.19 1.60 1.38 1.36 2.07

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,922,500K + $160,500K + $459,500K) ÷ $2,133,700K
= 1.19

The quick ratio of Ralph Lauren Corp Class A has shown variations over the past five years. As of March 31, 2021, the quick ratio was at a healthy level of 2.07, indicating a strong ability to cover its short-term obligations with its most liquid assets. However, there was a significant decline in the quick ratio to 1.36 by March 31, 2022, suggesting a potential liquidity crunch or a decrease in the proportion of highly liquid assets in relation to current liabilities.

Subsequently, there was a slight improvement in the quick ratio to 1.38 by March 31, 2023, indicating a better liquidity position compared to the previous year. The ratio continued to increase to 1.60 by March 31, 2024, reflecting a further strengthening of the company's ability to meet its short-term obligations.

Interestingly, there was a decline in the quick ratio to 1.19 by March 31, 2025, which might raise concerns about the firm's liquidity position. Overall, while the quick ratio has fluctuated over the years, it is essential for stakeholders to monitor the trend closely to assess Ralph Lauren Corp Class A's liquidity and short-term financial health accurately.


Peer comparison

Mar 31, 2025