Ralph Lauren Corp Class A (RL)

Financial leverage 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
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
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
Financial leverage ratio		2.69	2.72	2.84	2.81	2.79	2.85	2.99	2.94	3.05	2.99	2.86	2.93	3.03	3.04	3.05	3.03	2.70	2.39	2.48	2.44

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, which measures the extent to which the company relies on debt financing, has fluctuated over the past several quarters. The ratio has ranged from 2.39 to 3.05 during the period analyzed.

The trend shows a general upward movement in the financial leverage ratio from the end of 2019 to mid-2022, peaking at 3.05 in the third quarter of 2022. However, since then, the ratio has exhibited some volatility but generally remained within the range of 2.69 to 3.05.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. A higher ratio suggests greater financial risk due to increased debt obligations. It is important for investors and creditors to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage its financial risk.