Ralph Lauren Corp Class A (RL)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	1,662,200	1,529,300	1,863,800	2,579,000	1,620,400
Short-term investments	US$ in thousands	121,000	36,400	734,600	197,500	495,900
Receivables	US$ in thousands	473,700	478,400	446,800	480,400	304,100
Total current liabilities	US$ in thousands	1,467,200	1,493,500	2,255,700	1,584,800	2,092,000
Quick ratio		1.54	1.37	1.35	2.06	1.16

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,662,200K + $121,000K + $473,700K) ÷ $1,467,200K
= 1.54

The quick ratio of Ralph Lauren Corp Class A has exhibited fluctuations over the past five years, ranging from 1.16 to 2.06. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position, as seen in the improvement from 1.16 in 2020 to 2.06 in 2021. However, the quick ratio decreased in subsequent years, suggesting a potential decline in the company's ability to cover its current liabilities with its quick assets. The latest quick ratio of 1.54 in 2024 indicates that the company may be less liquid compared to 2021 but still has a relatively healthy ability to meet short-term obligations. It is important for investors and stakeholders to continue monitoring these trends to assess the company's liquidity position.