Ralph Lauren Corp Class A (RL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	932,100	884,900	812,900	798,500	756,400	688,800	653,200	695,400	704,200	662,200	669,200	714,400	759,800	735,900	617,200	345,000	-43,600	-301,700	-247,700	5,700
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
Operating ROA		13.23%	12.50%	11.95%	12.02%	11.46%	9.83%	9.72%	10.12%	10.37%	9.41%	9.94%	10.28%	9.84%	9.05%	7.55%	4.33%	-0.55%	-3.69%	-3.20%	0.07%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $932,100K ÷ $7,047,300K
= 13.23%

Operating Return on Assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. For Ralph Lauren Corp Class A, the operating ROA trend over the past few quarters shows significant fluctuations:

- As of June 30, 2020, the operating ROA was 0.07%, indicating a very low profitability from its assets.
- However, in the subsequent quarters, the company experienced negative operating ROA figures, reaching a low of -3.69% by December 31, 2020.
- The trend started to improve in the following quarters, with the operating ROA turning positive and steadily increasing. By March 31, 2025, the operating ROA had climbed to 13.23%, reflecting a positive and healthy return on operational assets for the company.

Overall, the improving trend in operating ROA for Ralph Lauren Corp Class A suggests increasing efficiency in utilizing its operational assets to generate profits. This could be driven by various factors such as better cost management, increased sales, or operational improvements. It is crucial for investors and stakeholders to monitor this ratio to assess the company's operational efficiency and profitability over time.