Ralph Lauren Corp Class A (RL)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.72 | 2.69 | 2.79 | 3.05 | 3.03 |
Ralph Lauren Corp Class A has consistently shown strong solvency ratios over the years, as indicated by the data provided. The company has maintained a Debt-to-assets ratio of 0.00% from March 31, 2021, to March 31, 2025, signaling that it has no debt relative to its total assets during this period.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at 0.00% throughout the five-year period, reflecting minimal reliance on debt in relation to both total capital and shareholders' equity, respectively.
The Financial leverage ratio, which measures the extent of a company's financial leverage, has fluctuated slightly over the years. Despite this variability, the ratio has consistently remained at a moderate level, ranging from 2.69 to 3.05 from March 31, 2021, to March 31, 2025. This indicates that the company effectively utilizes a mix of equity and debt to finance its operations without taking on excessive financial risk.
Overall, Ralph Lauren Corp Class A's solvency ratios demonstrate a prudent financial management approach with low debt levels relative to its assets, capital, and equity, contributing to its overall financial stability and resilience.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 17.77 | 19.72 | 14.39 | 15.06 | -0.31 |
The interest coverage ratio for Ralph Lauren Corp Class A has shown a significant improvement over the years. In March 2021, the company's interest coverage ratio was -0.31, indicating that the company did not generate enough operating income to cover its interest expenses. However, by March 2022, the interest coverage ratio improved drastically to 15.06, showing that the company's operating income was more than sufficient to cover its interest expenses.
This positive trend continued in the following years, with the interest coverage ratios for March 2023, March 2024, and March 2025 standing at 14.39, 19.72, and 17.77, respectively. These ratios suggest that Ralph Lauren Corp Class A has been effectively managing its interest costs and generating strong enough operating income to comfortably cover its interest expenses.
Overall, the consistent improvement in the interest coverage ratio reflects the company's ability to meet its debt obligations through its operational earnings, indicating a positive financial health and reduced risk of default due to insufficient interest coverage.