Ralph Lauren Corp Class A (RL)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 921,400 | 868,800 | 849,700 | 821,900 | 806,100 | 586,500 | 557,100 | 596,800 | 591,700 | 725,800 | 726,700 | 771,900 | 812,200 | 756,000 | 657,100 | 387,100 | -3,400 | -262,700 | -208,800 | 57,300 |
Interest expense (ttm) | US$ in thousands | 47,300 | 45,500 | 44,500 | 43,100 | 42,200 | 37,700 | 39,100 | 38,600 | 40,400 | 47,000 | 48,400 | 52,500 | 54,000 | 54,200 | 53,000 | 52,200 | 48,500 | 39,400 | 31,400 | 23,000 |
Interest coverage | 19.48 | 19.09 | 19.09 | 19.07 | 19.10 | 15.56 | 14.25 | 15.46 | 14.65 | 15.44 | 15.01 | 14.70 | 15.04 | 13.95 | 12.40 | 7.42 | -0.07 | -6.67 | -6.65 | 2.49 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $921,400K ÷ $47,300K
= 19.48
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the company's interest expenses.
Analyzing the interest coverage data provided for Ralph Lauren Corp Class A, we observe fluctuations in the ratio over the specified time period. In June 2020, the interest coverage ratio was 2.49, indicating that the company's EBIT was sufficient to cover its interest expenses comfortably.
However, the following quarters showed a concerning trend with negative values, indicating that the company's EBIT was not enough to cover its interest obligations. This could suggest financial distress or challenges in generating profits to cover interest payments during that period.
Starting from June 2021, the interest coverage ratio improved significantly, surpassing 12 in the subsequent quarters. This significant improvement indicates that the company's earnings were more than enough to cover its interest expenses, reflecting a healthier financial position and improved profitability.
By the end of March 2025, the interest coverage ratio stood at 19.48, signifying a strong ability to meet interest payments. This improvement over time suggests that Ralph Lauren Corp Class A has successfully managed its interest obligations and enhanced its financial stability.
Overall, the analysis of the interest coverage ratio for Ralph Lauren Corp Class A indicates fluctuations in the company's ability to cover interest expenses but demonstrates a positive trend towards improved financial health and profitability in recent quarters.
Peer comparison
Mar 31, 2025