Ralph Lauren Corp Class A (RL)

Return on assets (ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	742,900	646,300	522,700	600,100	-121,100
Total assets	US$ in thousands	7,047,300	6,602,600	6,789,500	7,724,700	7,887,500
ROA		10.54%	9.79%	7.70%	7.77%	-1.54%

March 31, 2025 calculation

ROA = Net income ÷ Total assets
= $742,900K ÷ $7,047,300K
= 10.54%

Over the past five years, Ralph Lauren Corp Class A has shown a fluctuating trend in return on assets (ROA). The ROA was negative at -1.54% as of March 31, 2021, indicating that the company's assets were not generating a positive return during that period. However, in the subsequent years, the ROA improved significantly, reaching 7.77% as of March 31, 2022, and further increasing to 7.70% as of March 31, 2023.

The positive trend continued, with the ROA reaching 9.79% as of March 31, 2024, and climbing to 10.54% as of March 31, 2025. This steady improvement in ROA suggests that Ralph Lauren Corp Class A has been effectively utilizing its assets to generate profits over the years.

Overall, the increasing trend in ROA indicates that the company has been more efficient in generating profits relative to its total assets, which is a positive indicator of financial performance and operational efficiency.