Ralph Lauren Corp Class A (RL)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	1,140,500	1,138,500	1,136,500	1,632,900	396,400
Total assets	US$ in thousands	6,602,600	6,789,500	7,724,700	7,887,500	7,279,900
Debt-to-assets ratio		0.17	0.17	0.15	0.21	0.05

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,140,500K ÷ $6,602,600K
= 0.17

The debt-to-assets ratio of Ralph Lauren Corp Class A has shown fluctuations over the past five years. As of March 31, 2024, the ratio stood at 0.17, which remained consistent with the previous year. This indicates that for every dollar of assets, the company had 17 cents of debt.

In the preceding year, the ratio was also 0.17, suggesting a stable level of indebtedness relative to assets. However, in March 31, 2022, the ratio decreased to 0.15, indicating a lower level of debt compared to assets. This could signify effective management of debt levels or increased asset growth during that period.

The ratio spiked in March 31, 2021, reaching 0.21, which may indicate a higher reliance on debt to fund operations or investments during that fiscal year. Conversely, in March 31, 2020, the ratio was significantly lower at 0.05, pointing towards a conservative debt structure relative to assets.

Overall, the debt-to-assets ratio of Ralph Lauren Corp Class A has experienced variability over the past five years, reflecting changes in the company's financial leverage and asset base. It is essential to monitor this ratio closely to assess the company's financial risk and capital structure management.