Ralph Lauren Corp Class A (RL)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	6,602,600	7,004,500	6,723,100	6,868,400	6,789,500	7,039,900	6,733,600	6,951,100	7,724,700	8,135,600	8,176,700	7,961,900	7,887,500	8,172,200	7,751,600	7,740,400	7,279,900	7,445,900	7,228,500	7,343,700
Debt-to-assets ratio		0.17	0.16	0.17	0.17	0.17	0.16	0.17	0.16	0.15	0.14	0.14	0.14	0.21	0.20	0.21	0.21	0.05	0.05	0.05	0.09

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 some fluctuations over the past few quarters, ranging from 0.14 to 0.21. The ratio indicates the proportion of the company's total assets that are financed by debt, with lower ratios typically viewed as more favorable due to lower financial risk.

From December 2021 to March 2022, there was a noticeable increase in the debt-to-assets ratio from 0.14 to 0.21, which might indicate an increase in debt relative to assets during that period. However, from March 2022 to March 2024, the ratio remained relatively stable between 0.15 to 0.17.

Overall, the company has maintained a moderate level of debt relative to its assets, with the ratio hovering around 0.16 on average. This suggests that a significant portion of the company's assets is financed by equity rather than debt, which could indicate a conservative approach to capital structure and lower financial risk for the company.