Ralph Lauren Corp Class A (RL)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	819,600	732,300	808,600	-26,300	344,000
Long-term debt	US$ in thousands	1,140,500	1,138,500	1,136,500	1,632,900	396,400
Total stockholders’ equity	US$ in thousands	2,450,300	2,430,500	2,536,000	2,604,400	2,693,100
Return on total capital		22.82%	20.52%	22.02%	-0.62%	11.13%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $819,600K ÷ ($1,140,500K + $2,450,300K)
= 22.82%

Ralph Lauren Corp Class A's return on total capital has shown a generally positive trend over the past five years. The metric increased from -0.62% in 2021 to 22.82% in 2024, indicating a significant improvement in the company's ability to generate profits from its total invested capital. This upward trajectory suggests that the company has been effectively utilizing its resources and assets to generate returns for its stakeholders. The consistent improvement in the return on total capital reflects positively on the company's operational efficiency and management's ability to drive profitability. Overall, the rising trend in return on total capital indicates a strengthening financial performance of Ralph Lauren Corp Class A.