Ralph Lauren Corp Class A (RL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,631,400	6,604,300	6,502,600	6,449,500	6,443,600	6,425,500	6,408,600	6,332,800	6,218,500	5,982,800	5,600,200	5,289,600	4,400,800	4,387,900	4,705,800	5,218,500	6,159,800	6,391,400	6,366,500	6,351,200
Property, plant and equipment	US$ in thousands	850,400	874,300	875,600	930,000	955,500	947,500	899,100	931,400	969,500	965,400	971,000	974,600	1,014,000	1,086,400	921,500	945,800	979,500	1,028,200	1,011,000	987,000
Fixed asset turnover		7.80	7.55	7.43	6.93	6.74	6.78	7.13	6.80	6.41	6.20	5.77	5.43	4.34	4.04	5.11	5.52	6.29	6.22	6.30	6.43

March 31, 2024 calculation

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

The fixed asset turnover ratio for Ralph Lauren Corp Class A has shown a generally increasing trend over the past few quarters, indicating an improvement in the company's efficiency in generating sales from its fixed assets. From a value of 6.43 in June 2019, the ratio steadily increased to 7.80 in March 2024.

A fixed asset turnover ratio of 7.80 in March 2024 means that the company generated $7.80 in sales for every dollar invested in fixed assets during that period. This signifies that Ralph Lauren Corp Class A has been effectively utilizing its fixed assets to generate revenue.

Overall, the improving trend in the fixed asset turnover ratio suggests that the company has become more efficient in managing and utilizing its fixed assets to drive sales growth. It indicates that Ralph Lauren Corp Class A is becoming more effective in generating revenue from its investment in fixed assets, which can be a positive sign for investors and stakeholders.