Ralph Lauren Corp Class A (RL)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	7,079,000	6,949,600	6,740,100	6,647,100	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
Total assets	US$ in thousands	7,047,300	7,080,900	6,800,000	6,641,000	6,602,600	7,004,500	6,723,100	6,868,400	6,789,500	7,039,900	6,733,600	6,951,100	7,724,700	8,135,600	8,176,700	7,961,900	7,887,500	8,172,200	7,751,600	7,740,400
Total asset turnover		1.00	0.98	0.99	1.00	1.00	0.94	0.97	0.94	0.95	0.91	0.95	0.91	0.81	0.74	0.68	0.66	0.56	0.54	0.61	0.67

March 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,079,000K ÷ $7,047,300K
= 1.00

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It is calculated by dividing the company's total revenue by its average total assets.

Analyzing the total asset turnover ratio of Ralph Lauren Corp Class A over the past several quarters, we can observe fluctuations in the efficiency with which the company is utilizing its assets to generate sales. The trend shows a slight decrease from 0.67 as of June 30, 2020, to 0.54 as of December 31, 2020. This decrease could indicate that the company may be experiencing challenges in managing its assets effectively to drive revenue during that period.

However, the total asset turnover ratio began to improve from March 31, 2021, reaching a peak of 1.00 by June 30, 2024. This increase suggests that Ralph Lauren Corp Class A has been able to enhance its asset utilization efficiency, generating more sales for each dollar of assets invested.

Overall, the upward trend in the total asset turnover ratio indicates that the company has been successful in optimizing its asset management strategies to drive revenue growth over the analyzed period. A total asset turnover ratio of 1.00 as of March 31, 2025, suggests that the company is effectively utilizing its assets to generate sales revenue, demonstrating operational efficiency and financial health.