The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Ralph Lauren's quick ratio for the quarter that ended in Dec. 2023 was 1.54.
Ralph Lauren has a quick ratio of 1.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ralph Lauren's Quick Ratio or its related term are showing as below:
RL'
s Quick Ratio Range Over the Past 10 Years
Min: 1.26 Med: 1.69 Max: 2.38
Current: 1.54
During the past 13 years, Ralph Lauren's highest Quick Ratio was 2.38. The lowest was 1.26. And the median was 1.69.
The historical data trend for Ralph Lauren's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Ralph Lauren Annual Data
Trend
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
Mar22
Mar23
Quick Ratio
2.31
1.26
2.18
1.44
1.51
Ralph Lauren Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
1.37
1.51
1.43
1.37
1.54
Competitive Comparison
For the Apparel Manufacturing subindustry, Ralph Lauren's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ralph Lauren Quick Ratio Distribution
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's Quick Ratio falls into.
Ralph Lauren Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Ralph Lauren's Quick Ratio for the fiscal year that ended in Mar. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ralph Lauren (NYSE:RL) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Ralph Lauren Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ralph Lauren's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RL has been successfully added to your 