Ralph Lauren Corp Class A (RL)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,588,500 2,450,300 2,430,500 2,536,000 2,604,400
ROE 28.70% 26.38% 21.51% 23.66% -4.65%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $742,900K ÷ $2,588,500K
= 28.70%

Based on the provided data, Ralph Lauren Corp Class A's return on equity (ROE) has shown significant improvement over the past five years.

- In March 2021, the ROE was negative at -4.65%, indicating that the company was not generating positive returns for its shareholders.
- However, by March 2022, the ROE had increased sharply to 23.66%, signaling a substantial improvement in the company's profitability and efficiency in generating returns from shareholders' equity.
- The positive trend continued in the following years, with ROE reaching 21.51% in March 2023, 26.38% in March 2024, and further climbing to 28.70% by March 2025.

Overall, Ralph Lauren Corp Class A has shown a remarkable turnaround in its ROE performance, reflecting increased profitability and a more effective utilization of shareholder equity to generate returns. This positive trend indicates improved financial health and management efficiency within the company.