Ralph Lauren Corp Class A (RL)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	756,400	704,200	798,400	-43,600	317,000
Total assets	US$ in thousands	6,602,600	6,789,500	7,724,700	7,887,500	7,279,900
Operating ROA		11.46%	10.37%	10.34%	-0.55%	4.35%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $756,400K ÷ $6,602,600K
= 11.46%

The operating return on assets (operating ROA) for Ralph Lauren Corp Class A has shown fluctuations over the past five years. In the most recent fiscal year ended on March 31, 2024, the operating ROA stood at 11.46%, indicating an improvement compared to the previous fiscal year. This suggests that the company generated a higher operating profit relative to its total assets, which is a positive sign.

In the preceding fiscal years, the operating ROA was relatively stable, hovering around the range of 10% to 4%. However, there was a significant decline in the operating ROA for the fiscal year ended on March 31, 2021, where it dropped to -0.55%, implying that the company's operating profitability was negative relative to its assets during that period.

It is important to note that the overall trend indicates an improvement in operating ROA over the past years, with the most recent fiscal year showing a strong performance in utilizing assets to generate operating profit. This positive trend suggests that Ralph Lauren Corp Class A has been effectively managing its assets to drive operational efficiency and profitability.