Ralph Lauren Corp Class A (RL)

Return on assets (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
Net income (ttm) US$ in thousands 742,900 704,600 683,800 682,800 646,300 587,900 527,800 531,400 522,700 514,800 516,000 558,800 600,100 501,600 403,700 171,300 -121,100 -296,000 -81,700 139,500
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
ROA 10.54% 9.95% 10.06% 10.28% 9.79% 8.39% 7.85% 7.74% 7.70% 7.31% 7.66% 8.04% 7.77% 6.17% 4.94% 2.15% -1.54% -3.62% -1.05% 1.80%

March 31, 2025 calculation

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

Ralph Lauren Corp Class A has shown fluctuations in its return on assets (ROA) over the reporting periods provided. The ROA started at a positive 1.80% as of June 30, 2020, indicating that the company generated 1.80 cents of profit for each dollar of assets it owned. However, by September 2020, the ROA turned negative at -1.05% and continued to decline, reaching a low of -3.62% by December 2020.

The company managed to reverse this trend by the end of March 2021, recording a less negative ROA of -1.54%, which further improved to 2.15% by June 2021. The positive trajectory continued as the ROA rose to 4.94% by September 2021, signaling an improvement in the company's asset efficiency.

Subsequently, Ralph Lauren Corp Class A demonstrated consistent growth in its ROA performance, reaching 8.39% as of December 31, 2023. Throughout the following reporting periods, the ROA remained relatively stable, hovering between 7.31% and 10.54% as of March 31, 2025.

Overall, the increasing trend in the ROA over the years indicates that Ralph Lauren Corp Class A has been effectively utilizing its assets to generate profits, with the most recent ROA of 10.54% reflecting the company's ability to generate higher returns from its asset base.