Ralph Lauren Corp Class A (RL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,588,500	2,539,200	2,442,300	2,367,000	2,450,300	2,571,900	2,369,200	2,441,000	2,430,500	2,467,800	2,255,600	2,364,100	2,536,000	2,722,900	2,862,800	2,717,700	2,604,400	2,692,000	2,544,100	2,555,500
ROE		28.70%	27.75%	28.00%	28.85%	26.38%	22.86%	22.28%	21.77%	21.51%	20.86%	22.88%	23.64%	23.66%	18.42%	14.10%	6.30%	-4.65%	-11.00%	-3.21%	5.46%

March 31, 2025 calculation

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

Ralph Lauren Corp Class A has experienced fluctuations in its return on equity (ROE) over the past few years. Starting from June 2020 with an ROE of 5.46%, the company saw negative ROE values in the subsequent quarters of September 2020, December 2020, and March 2021, indicating inefficiency in generating profits relative to its equity.

However, there was a turnaround in the company's performance from June 2021 onwards, with ROE turning positive and showing an increasing trend. The ROE figures for the periods from June 2021 to March 2025 demonstrate a consistent improvement, reaching a peak of 28.70% in March 2025.

The latest ROE of 28.70% as of March 2025 indicates that Ralph Lauren Corp Class A is effectively utilizing its equity to generate profits for its shareholders. This upward trend in ROE reflects positively on the company's financial performance and efficiency in managing its resources to create value for investors.