Ralph Lauren Corp Class A (RL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,450,300	2,430,500	2,536,000	2,604,400	2,693,100
Debt-to-capital ratio		0.32	0.32	0.31	0.39	0.13

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,140,500K ÷ ($1,140,500K + $2,450,300K)
= 0.32

The debt-to-capital ratio of Ralph Lauren Corp Class A, as of March 31, 2024, remains stable at 0.32, consistent with the previous year's ratio. This ratio suggests that the company utilizes approximately 32% of its capital structure to fund its operations through debt, while the remaining 68% represents the equity portion. Comparing it to historical trends, we observe that the debt-to-capital ratio has fluctuated over the past five years, reaching its lowest point in March 2020 at 0.13 and its highest in March 2021 at 0.39.

A lower debt-to-capital ratio implies a lesser reliance on debt financing, indicating a stronger financial position and lower financial risk. On the other hand, a higher ratio may suggest a greater proportion of debt in the capital structure, potentially leading to higher interest payments and financial vulnerability. Overall, the consistent debt-to-capital ratio of Ralph Lauren Corp Class A indicates a moderate level of debt usage in its capital structure, maintaining a balance between debt and equity financing.