Ralph Lauren Corp Class A (RL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	756,400	688,800	653,200	695,400	704,200	700,800	707,800	753,000	798,400	735,900	617,200	345,000	-43,600	-301,700	-247,700	5,700	317,000	628,700	598,100	575,000
Total assets	US$ in thousands	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	7,279,900	7,445,900	7,228,500	7,343,700
Operating ROA		11.46%	9.83%	9.72%	10.12%	10.37%	9.95%	10.51%	10.83%	10.34%	9.05%	7.55%	4.33%	-0.55%	-3.69%	-3.20%	0.07%	4.35%	8.44%	8.27%	7.83%

March 31, 2024 calculation

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

Operating return on assets (ROA) is a key financial ratio that provides insight into how efficiently a company is generating operating profits relative to its total assets. Ralph Lauren Corp Class A has displayed varying levels of operating ROA over the past few quarters.

From December 2019 to March 2020, the company saw a positive operating ROA, indicating that it was generating operating profits from its assets. However, this trend reversed in the subsequent quarters, with negative operating ROA figures from March 2020 to September 2021. This suggests that during this period, the company was not effectively utilizing its assets to generate operating income.

From September 2021 onwards, there was an improvement in the operating ROA, with consistent positive figures indicating that the company was becoming more efficient in generating operating profits relative to its assets. Notably, there was a significant improvement in operating ROA from September 2021 to March 2022, reflecting a positive trend in the company's operational efficiency.

Overall, while there have been fluctuations in Ralph Lauren Corp Class A's operating ROA, the recent trend suggests an improvement in the company's ability to generate operating profits from its assets. It will be important to monitor future quarters to assess the sustainability of this positive trend in operational efficiency.