Ralph Lauren Corp Class A (RL)

Quick ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cash	US$ in thousands	1,922,500	1,940,200	1,355,000	1,586,900	1,665,000	1,803,600	1,381,800	1,607,200	1,529,300	1,566,100	1,107,100	1,458,300	1,863,800	2,276,800	2,387,900	2,596,400	2,579,000	2,621,500	2,012,000	2,451,300
Short-term investments	US$ in thousands	160,500	203,000	334,700	173,600	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
Receivables	US$ in thousands	459,500	578,500	643,700	487,000	561,000	527,400	587,800	461,200	498,400	474,500	626,500	484,300	469,100	542,200	461,400	498,000	505,900	512,400	354,000	172,600
Total current liabilities	US$ in thousands	2,133,700	2,221,800	2,092,400	1,573,600	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
Quick ratio		1.19	1.22	1.12	1.43	1.60	1.46	1.28	1.34	1.38	1.24	1.20	1.30	1.36	1.45	1.56	1.64	2.07	1.97	1.80	1.94

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 shows a fluctuating trend over the past few years. It has ranged from a high of 2.07 in March 2021 to a low of 1.12 in September 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities, with a higher ratio implying greater liquidity and financial health.

Ralph Lauren's quick ratio has generally remained above 1, indicating a consistent ability to meet short-term obligations. However, the decreasing trend observed from 2022 to 2025 may raise concerns about the company's liquidity position. It is important for investors and stakeholders to monitor this ratio closely to ensure that Ralph Lauren maintains a strong financial position to weather any potential challenges in the future.