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.