Ralph Lauren Corp Class A (RL)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	1,007,400	832,100	581,200	813,000	-15,000
Interest expense	US$ in thousands	56,700	42,200	40,400	54,000	48,500
Interest coverage		17.77	19.72	14.39	15.06	-0.31

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,007,400K ÷ $56,700K
= 17.77

The interest coverage ratio for Ralph Lauren Corp Class A has shown a significant improvement over the years based on the provided data. As of March 31, 2021, the company's interest coverage ratio was notably weak at -0.31, indicating that its earnings before interest and taxes were insufficient to cover its interest expenses.

However, the company's financial health substantially improved in the subsequent years. By March 31, 2022, the interest coverage ratio had surged to 15.06, demonstrating a much healthier position and a significantly improved ability to meet its interest obligations. This positive trend continued in the following years, with ratios of 14.39 in 2023, 19.72 in 2024, and 17.77 in 2025, showing consistent strength in the company's ability to cover its interest expenses.

Overall, the progressive increase in the interest coverage ratio reflects a positive trajectory for Ralph Lauren Corp Class A, indicating improved profitability and a strengthened capacity to service its debt obligations through its operating profits.