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.