Ralph Lauren Corp Class A (RL)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	819,600	752,800	704,800	738,900	732,300	719,000	717,200	759,300	808,600	744,200	628,000	360,000	-26,300	-287,300	-227,100	30,200	344,000	666,800	636,900	616,700
Long-term debt	US$ in thousands	1,140,500	1,140,000	1,139,500	1,139,000	1,138,500	1,138,000	1,137,500	1,137,000	1,136,500	1,136,000	1,135,500	1,135,000	1,632,900	1,631,900	1,631,000	1,630,100	396,400	396,300	396,100	692,100
Total stockholders’ equity	US$ in thousands	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	2,693,100	3,116,500	2,913,600	3,012,800
Return on total capital		22.82%	20.28%	20.09%	20.64%	20.52%	19.94%	21.14%	21.69%	22.02%	19.29%	15.71%	9.34%	-0.62%	-6.64%	-5.44%	0.72%	11.13%	18.98%	19.24%	16.65%

March 31, 2024 calculation

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

Return on total capital for Ralph Lauren Corp Class A has shown variability over the past few quarters. The ratio has generally been positive, indicating the company's ability to generate returns from the total capital employed in its operations.

The ratio ranged from a low of -6.64% in Dec 31, 2020, to a high of 22.82% in Mar 31, 2024. This shows fluctuations in the company's profitability and efficiency in utilizing its total capital during these periods.

Overall, the recent trend indicates an improvement in return on total capital, with an increasing trend from 19.24% in Sep 30, 2019, reaching 22.82% in Mar 31, 2024. This suggests that the company has been more effective in generating returns from its investments and operational activities in the recent quarters.