Ralph Lauren Corp Class A (RL)

Financial leverage ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Total assets	US$ in thousands	7,047,300	7,080,900	6,800,000	6,641,000	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
Total stockholders’ equity	US$ in thousands	2,588,500	2,539,200	2,442,300	2,367,000	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
Financial leverage ratio		2.72	2.79	2.78	2.81	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

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,047,300K ÷ $2,588,500K
= 2.72

The financial leverage ratio of Ralph Lauren Corp Class A has fluctuated over the given time period. The ratio, which indicates the company's level of debt in relation to its equity, stood at 3.03 as of June 30, 2020, and gradually decreased to 2.72 by December 31, 2024. This downward trend suggests that the company may have been reducing its reliance on debt financing over the years.

However, there were fluctuations in the ratio within the period, indicating changes in the company's capital structure and financial strategy. For example, there was a slight increase in the ratio to 3.05 by September 30, 2022, which was followed by a decrease to 2.69 by March 31, 2024.

Overall, Ralph Lauren Corp Class A's financial leverage ratio has shown variability, but the general downward trend could indicate a shift towards a more conservative capital structure and a lower level of financial risk.