Ralph Lauren Corp Class A (RL)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	646,300	522,700	600,100	-121,100	384,300
Total stockholders’ equity	US$ in thousands	2,450,300	2,430,500	2,536,000	2,604,400	2,693,100
ROE		26.38%	21.51%	23.66%	-4.65%	14.27%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $646,300K ÷ $2,450,300K
= 26.38%

Ralph Lauren Corp Class A's return on equity (ROE) has exhibited fluctuations over the past five years. The ROE was notably positive in the most recent fiscal year ending March 31, 2024, at 26.38%, showing an improvement compared to the previous year. This indicates that for each dollar of shareholder equity, the company generated a profit of 26.38 cents.

In the preceding years, the ROE demonstrated a varying trend. In fiscal year 2023, the ROE was 21.51%, slightly lower than the current year but still reflective of a strong performance. Fiscal year 2022 saw an ROE of 23.66%, indicating a robust return generated from shareholders' investments.

However, the company experienced a significant decline in ROE in fiscal year 2021, where it posted a negative ROE of -4.65%. This negative value suggests that the company incurred a loss for that year, resulting in a negative return on equity for shareholders.

Prior to the negative ROE, in fiscal year 2020, the ROE stood at 14.27%, representing a moderate return on equity for the company's shareholders.

Overall, Ralph Lauren Corp Class A's ROE has shown volatility over the period analyzed, with the most recent year reflecting a strong performance in generating returns for its shareholders. It is important for investors and stakeholders to monitor ROE trends over time to assess the company's profitability and efficiency in generating returns on invested capital.