Ralph Lauren Corp Class A (RL)

Solvency ratios

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
Debt-to-assets ratio 0.17 0.16 0.17 0.17 0.17 0.16 0.17 0.16 0.15 0.14 0.14 0.14 0.21 0.20 0.21 0.21 0.05 0.05 0.05 0.09
Debt-to-capital ratio 0.32 0.31 0.32 0.32 0.32 0.32 0.34 0.32 0.31 0.29 0.28 0.29 0.39 0.38 0.39 0.39 0.13 0.11 0.12 0.19
Debt-to-equity ratio 0.47 0.44 0.48 0.47 0.47 0.46 0.50 0.48 0.45 0.42 0.40 0.42 0.63 0.61 0.64 0.64 0.15 0.13 0.14 0.23
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

The solvency ratios of Ralph Lauren Corp Class A provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio remained relatively stable around 0.15 to 0.21 over the past two years, indicating that the company has maintained a relatively low level of debt compared to its total assets.

2. Debt-to-capital ratio fluctuated between 0.28 to 0.39 during the same period, suggesting that the company finances a certain portion of its operations through debt, but also relies on capital from other sources.

3. Debt-to-equity ratio has shown a similar trend, moving between 0.40 to 0.64, indicating a moderate level of leverage where the company uses a mix of debt and equity to fund its operations.

4. The financial leverage ratio has ranged from 2.39 to 3.05, revealing the company's increasing reliance on debt to finance its operations and indicating potential financial risk due to higher leverage.

Overall, while Ralph Lauren Corp Class A has maintained moderate levels of debt relative to its assets, capital, and equity, the increasing trend in leverage ratios highlights the need for careful monitoring of its debt management strategies to ensure financial stability in the long term.

Coverage ratios

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
Interest coverage 19.42 19.97 18.03 19.14 18.13 15.30 14.82 14.46 14.97 13.73 11.85 6.90 -0.54 -7.29 -7.23 1.31 19.55 37.25 33.70 30.08

The interest coverage ratio for Ralph Lauren Corp Class A has shown fluctuations over the past few quarters. The ratio measures the company's ability to meet its interest obligations on outstanding debt.

From Mar 2021 to Mar 2023, the company's interest coverage ratio showed a decreasing trend, dropping from 19.55 to 18.13. However, from Dec 2022 to Mar 2024, the ratio has been relatively stable and ranged from 14.46 to 19.97, indicating that the company has been able to comfortably cover its interest expenses during this period.

The negative interest coverage ratios reported in Mar 2020, Dec 2020, and Sep 2020 are concerning as they indicate that the company's earnings were insufficient to cover its interest expenses during those quarters. This could suggest financial distress or liquidity issues.

Overall, a higher interest coverage ratio is preferable as it indicates that the company is generating enough operating income to cover its interest payments. Investors and creditors typically view a high and consistent interest coverage ratio positively as it implies financial stability and a lower risk of default. It is important for Ralph Lauren Corp Class A to continue monitoring and improving its interest coverage ratio to ensure financial health and stability in the long term.