Ralph Lauren Corp Class A (RL)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	6,631,400	6,443,600	6,218,500	4,400,800	6,159,800
Property, plant and equipment	US$ in thousands	850,400	955,500	969,500	1,014,000	979,500
Fixed asset turnover		7.80	6.74	6.41	4.34	6.29

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,631,400K ÷ $850,400K
= 7.80

Ralph Lauren Corp Class A's fixed asset turnover has exhibited an improving trend over the past five years, indicating the company's ability to generate sales in relation to its investment in fixed assets. The fixed asset turnover ratio has increased from 4.34 in March 2021 to 7.80 in March 2024, reaching its highest level in the period analyzed. This suggests that the company is becoming more efficient in utilizing its fixed assets to generate sales revenue.

The substantial improvement in fixed asset turnover signifies that Ralph Lauren Corp Class A has been able to generate more sales relative to its investment in fixed assets, which is a positive indicator of operational efficiency. This increasing trend indicates that the company is making effective use of its fixed assets to drive revenue growth, potentially leading to improved profitability and shareholder value.