Ralph Lauren Corp Class A (RL)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	6,602,600	6,789,500	7,724,700	7,887,500	7,279,900
Total stockholders’ equity	US$ in thousands	2,450,300	2,430,500	2,536,000	2,604,400	2,693,100
Financial leverage ratio		2.69	2.79	3.05	3.03	2.70

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,602,600K ÷ $2,450,300K
= 2.69

The financial leverage ratio of Ralph Lauren Corp Class A has exhibited fluctuations over the past five years. The ratio decreased from 3.03 in March 2021 to 2.70 in March 2020, indicating a reduction in the company's reliance on debt to finance its assets. However, there was an increase in the ratio to 3.05 in March 2022, suggesting a higher level of debt usage relative to equity. Subsequently, the ratio decreased to 2.79 in March 2023 before further declining to 2.69 in March 2024.

Overall, the trend in the financial leverage ratio implies a varied approach to capital structure management over the years. The company appears to have made adjustments in its debt levels, possibly responding to changing business conditions or strategic objectives. It is essential for stakeholders to monitor these changes in the financial leverage ratio to assess the company's risk exposure and financial health.