Ralph Lauren Corp Class A (RL)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.55% | 66.83% | 64.65% | 66.70% | 65.02% |
| Operating profit margin | 13.17% | 11.41% | 10.93% | 12.84% | 5.46% |
| Pretax margin | 13.43% | 11.72% | 10.74% | 12.13% | -1.70% |
| Net profit margin | 10.49% | 9.75% | 8.11% | 9.65% | -2.75% |
Ralph Lauren Corp Class A has shown an improving trend in its profitability ratios over the past five years.
1. Gross Profit Margin: The company's gross profit margin has exhibited steady improvement, starting at 65.02% in March 31, 2021, and increasing to 68.55% by March 31, 2025. This indicates that Ralph Lauren has been effectively managing its production costs and generating more gross profit relative to its revenue.
2. Operating Profit Margin: The operating profit margin has also shown consistent growth, rising from 5.46% in March 31, 2021, to 13.17% by March 31, 2025. This suggests that the company has been successful in controlling its operating expenses and enhancing operational efficiency to increase its profitability.
3. Pretax Margin: Ralph Lauren's pretax margin improved significantly over the period, from -1.70% in March 31, 2021, to 13.43% in March 31, 2025. This demonstrates the company's ability to better manage its pre-tax income in relation to its total revenue, leading to enhanced profitability before taxes.
4. Net Profit Margin: The net profit margin of Ralph Lauren has also seen a positive trajectory, climbing from -2.75% in March 31, 2021, to 10.49% by March 31, 2025. This indicates that the company has been successful in increasing its bottom-line profitability by effectively managing its taxes, interest, and other expenses.
Overall, the increasing trend in these profitability ratios reflects Ralph Lauren Corp Class A's ability to efficiently manage its costs, enhance operational performance, and drive profitability over the years.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.23% | 11.46% | 10.37% | 10.34% | 3.05% |
| Return on assets (ROA) | 10.54% | 9.79% | 7.70% | 7.77% | -1.54% |
| Return on total capital | 38.92% | 33.96% | 23.91% | 32.06% | -0.58% |
| Return on equity (ROE) | 28.70% | 26.38% | 21.51% | 23.66% | -4.65% |
Ralph Lauren Corp Class A has shown consistent improvement in profitability ratios over the past five years. The Operating return on assets (Operating ROA) has increased from 3.05% in March 2021 to 13.23% in March 2025, indicating the company's ability to generate operating income relative to its total assets has significantly improved.
Similarly, the Return on assets (ROA) has also seen a positive trend, increasing from -1.54% in March 2021 to 10.54% in March 2025, reflecting the company's ability to generate profit from its assets.
Moreover, the Return on total capital has shown substantial growth, rising from -0.58% in March 2021 to 38.92% in March 2025. This ratio indicates how efficiently the company utilizes its total capital to generate profits.
Lastly, the Return on equity (ROE) has also demonstrated consistent improvement, increasing from -4.65% in March 2021 to 28.70% in March 2025. ROE reflects the company's ability to generate profits from shareholders' equity.
Overall, Ralph Lauren Corp Class A has shown a strong performance in terms of profitability, with all key ratios indicating an improving trend and strong financial health over the analyzed period.