Ralph Lauren Corp Class A (RL)

Quick ratio

		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	US$ in thousands	1,662,200	1,803,600	1,381,800	1,607,200	1,529,300	1,566,100	1,107,100	1,456,800	1,863,800	2,276,800	2,387,900	2,596,400	2,579,000	2,621,500	2,012,000	2,451,300	1,620,400	1,079,900	548,100	648,400
Short-term investments	US$ in thousands	121,000	113,800	85,100	73,100	36,400	131,400	309,600	320,100	734,600	710,200	673,100	368,000	197,500	165,700	434,100	259,300	495,900	828,500	1,041,400	1,280,700
Receivables	US$ in thousands	473,700	432,700	488,300	378,800	478,400	462,100	—	—	446,800	459,300	467,500	404,800	480,400	403,600	381,700	141,500	304,100	380,100	513,700	334,500
Total current liabilities	US$ in thousands	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	2,092,000	1,775,400	1,736,000	1,591,000
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

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 for Ralph Lauren Corp Class A fluctuated over the past several quarters, ranging from 0.83 to 2.06. Generally, a quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations.

In the most recent quarter, as of March 31, 2024, the quick ratio stood at 1.54, which suggests that the company had $1.54 of liquid assets available to cover each dollar of its current liabilities. This indicates a relatively healthy liquidity position for the company at that point in time.

However, it is important to note that the quick ratio has shown some volatility in the past quarters, with significant fluctuations observed. For instance, the quick ratio dropped to 0.83 as of September 30, 2022, which may have raised concerns about the company's ability to meet its short-term obligations using its liquid assets.

Overall, it is essential for stakeholders to monitor the trend of the quick ratio over time to assess the company's liquidity position and its ability to meet its short-term financial obligations effectively.