Ralph Lauren Corp Class A (RL)

Debt-to-equity 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 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
Debt-to-equity ratio		0.47	0.44	0.48	0.47	0.47	0.46	0.50	0.48	0.45	0.42	0.40	0.42	0.63	0.61	0.64	0.64	0.15	0.13	0.14	0.23

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,140,500K ÷ $2,450,300K
= 0.47

The debt-to-equity ratio of Ralph Lauren Corp Class A has fluctuated over the past several quarters, ranging from 0.13 to 0.64. A lower debt-to-equity ratio generally indicates a lower level of financial risk, as it signifies that the company is relying less on debt financing.

Looking at the trend, there seems to be some variability in the ratio, with periods of increase followed by fluctuations or decreases. The ratio was relatively stable around 0.47 to 0.48 for several quarters in 2023 before showing a significant spike to 0.63 in March 2021. This spike may indicate a period of increased debt relative to equity.

Subsequently, the ratio decreased to 0.13 in December 2019, which suggests a notable decrease in debt or an increase in equity during this period. It then gradually increased before experiencing another peak in June 2021 at 0.64.

Overall, the debt-to-equity ratio of Ralph Lauren Corp Class A has shown some volatility, possibly reflecting changes in the company's capital structure over the analyzed periods. It would be important to further investigate the factors driving these fluctuations to gain a deeper understanding of the company's financial health and risk profile.