Ralph Lauren Corp Class A (RL)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.83% | 64.65% | 66.70% | 65.02% | 59.31% |
| Operating profit margin | 11.41% | 10.93% | 12.84% | -0.99% | 5.15% |
| Pretax margin | 11.72% | 10.74% | 12.13% | -1.70% | 5.30% |
| Net profit margin | 9.75% | 8.11% | 9.65% | -2.75% | 6.24% |
Ralph Lauren Corp Class A has shown consistent improvements in its profitability ratios over the past five years. The gross profit margin has increased steadily from 59.31% in 2020 to 66.83% in 2024, indicating the company's ability to effectively manage its cost of goods sold.
The operating profit margin also shows positive trends, with a gradual increase from 5.15% in 2020 to 11.41% in 2024, reflecting improved operational efficiency and cost management. Similarly, the pretax margin has shown a positive trend, reaching 11.72% in 2024 compared to -1.70% in 2021, indicating better control over operating expenses and higher profitability before taxes.
The net profit margin has also displayed a remarkable improvement, with a significant recovery from -2.75% in 2021 to 9.75% in 2024. This indicates that the company has successfully managed its expenses and increased its profitability after accounting for all costs, including taxes.
Overall, Ralph Lauren Corp Class A's profitability ratios suggest a positive financial performance, with consistent growth in margins over the years, indicating effective cost management and operational efficiency.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.46% | 10.37% | 10.34% | -0.55% | 4.35% |
| Return on assets (ROA) | 9.79% | 7.70% | 7.77% | -1.54% | 5.28% |
| Return on total capital | 22.82% | 20.52% | 22.02% | -0.62% | 11.13% |
| Return on equity (ROE) | 26.38% | 21.51% | 23.66% | -4.65% | 14.27% |
Ralph Lauren Corp Class A demonstrated improving profitability ratios over the past five years, with notable increases in operating return on assets (Operating ROA), return on assets (ROA), return on total capital, and return on equity (ROE).
The Operating ROA increased steadily from 4.35% in March 2020 to 11.46% in March 2024, indicating the company's effectiveness in generating operating profits from its assets. Similarly, ROA showed a positive trend, reaching 9.79% in March 2024 compared to -1.54% in March 2021, demonstrating an enhancement in overall asset utilization efficiency.
Return on total capital also exhibited a positive trajectory, rising from 11.13% in March 2020 to 22.82% in March 2024. This suggests that Ralph Lauren Corp Class A was successful in generating returns on the total capital invested in the business.
Furthermore, ROE improved significantly, increasing from 14.27% in March 2020 to 26.38% in March 2024, indicating an enhancement in shareholder value creation. The consistent growth in profitability ratios reflects better financial performance and management efficiency by the company during the period under review.
Overall, Ralph Lauren Corp Class A's profitability ratios demonstrate a positive trend, indicating improved operational performance and a potential increase in shareholder value over the years.