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.


Peer comparison

Mar 31, 2025