Ralph Lauren Corp Class A (RL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios of Ralph Lauren Corp Class A provided in the data, we can observe the following trends:
1. Debt-to-assets ratio: Throughout the reporting periods from June 30, 2020, to March 31, 2025, the debt-to-assets ratio consistently stands at 0.00. This indicates that the company has not utilized any debt to finance its assets during this time frame, reflecting strong financial stability and independence from external borrowings in funding its operations.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 across all reporting periods. This reaffirms the company's conservative financial structure, with no significant debt obligations relative to its capital base. A low debt-to-capital ratio signifies a lower financial risk and greater capacity to withstand economic downturns.
3. Debt-to-equity ratio: The debt-to-equity ratio also remains consistently at 0.00 throughout the period analyzed. This ratio reflects the proportion of debt and equity used to finance the company's assets, and a ratio of 0.00 indicates that the company has zero debt compared to its equity. This suggests a strong equity position and minimal financial leverage.
4. Financial leverage ratio: The financial leverage ratio, which indicates the proportion of a company's assets that are financed through debt, shows a declining trend from 3.03 on June 30, 2020, to 2.72 on March 31, 2025. The decreasing trend in the leverage ratio indicates that the company has been reducing its reliance on debt financing over time, leading to a more conservative capital structure and lower financial risk.
In summary, Ralph Lauren Corp Class A exhibits strong solvency ratios, with no debt observed in its capital structure and a declining trend in the financial leverage ratio over the reporting periods. These ratios reflect a solid financial foundation, low financial risk, and effective management of capital resources by the company.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Ralph Lauren Corp Class A has shown fluctuations over the periods analyzed.
In June 30, 2020, the interest coverage ratio was 2.49, indicating that the company generated sufficient earnings to cover its interest expenses. However, the ratio turned negative in September 30, 2020, and remained negative in subsequent periods until June 30, 2021, suggesting that the company's earnings were insufficient to cover its interest obligations during these periods.
From September 30, 2021, the interest coverage ratio improved significantly, reaching 15.56 by December 31, 2023. This improvement indicates that the company's ability to cover its interest expenses strengthened, reflecting a healthier financial position.
Overall, the interest coverage ratio of Ralph Lauren Corp Class A has shown variability but demonstrated a positive trend towards improved coverage of interest expenses over the analyzed periods. Investors and stakeholders should continue monitoring this ratio to assess the company's ability to meet its debt obligations.