GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Ralph Lauren Corp (NYSE:RL) » Definitions » ROE %
中文

Ralph Lauren (Ralph Lauren) ROE %

: 44.78% (As of Dec. 2023)
View and export this data going back to 1997. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ralph Lauren's annualized net income for the quarter that ended in Dec. 2023 was $1,106 Mil. Ralph Lauren's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,471 Mil. Therefore, Ralph Lauren's annualized ROE % for the quarter that ended in Dec. 2023 was 44.78%.

The historical rank and industry rank for Ralph Lauren's ROE % or its related term are showing as below:

RL' s ROE % Range Over the Past 10 Years
Min: -4.57   Med: 12.82   Max: 23.94
Current: 23.94

During the past 13 years, Ralph Lauren's highest ROE % was 23.94%. The lowest was -4.57%. And the median was 12.82%.

RL's ROE % is ranked better than
90.66% of 1028 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.21 vs RL: 23.94

Ralph Lauren ROE % Historical Data

The historical data trend for Ralph Lauren's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ralph Lauren Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.78 12.85 -4.57 23.35 21.05

Ralph Lauren Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.67 5.28 21.69 24.43 44.78

Competitive Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ralph Lauren ROE % Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's ROE % distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's ROE % falls into.



Ralph Lauren ROE % Calculation

Ralph Lauren's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=522.7/( (2536+2430.5)/ 2 )
=522.7/2483.25
=21.05 %

Ralph Lauren's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=1106.4/( (2369.2+2571.9)/ 2 )
=1106.4/2470.55
=44.78 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Ralph Lauren  (NYSE:RL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=1106.4/2470.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1106.4 / 7736)*(7736 / 6863.8)*(6863.8 / 2470.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.3 %*1.1271*2.7782
=ROA %*Equity Multiplier
=16.12 %*2.7782
=44.78 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=1106.4/2470.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1106.4 / 1319.2) * (1319.2 / 1273.6) * (1273.6 / 7736) * (7736 / 6863.8) * (6863.8 / 2470.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8387 * 1.0358 * 16.46 % * 1.1271 * 2.7782
=44.78 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Ralph Lauren ROE % Related Terms

Thank you for viewing the detailed overview of Ralph Lauren's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ralph Lauren (Ralph Lauren) Business Description

Traded in Other Exchanges
Address
650 Madison Avenue, New York, NY, USA, 10022
Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
Executives
Halide Alagoz officer: Chief Product Officer RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Patrice Louvet director, officer: President and CEO ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Wei Zhang director RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Debra S. Cupp director RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Andrew Howard Smith officer: EVP, Chief Commercial Officer RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Hubert Joly director C/O BEST BUY CO, INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Jane Nielsen officer: Corp. Sr. Vice President, CFO 516 WEST 34TH STREET, NEW YORK NY 10001
Michael A George director
Valerie B Jarrett director USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
Darren Walker director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Lauren Family, L.l.c. 10 percent owner 1065 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10018
David R. Lauren director, officer: Vice Chair, Chief Innovation RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Joyce F Brown director C/O RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Valerie Hermann officer: Pres., RL Luxury Collections RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Ricky Lauren 10 percent owner C/O TIEDEMANN ADVISORS, 520 MADISON AVE, NEW YORK NY 10022

Ralph Lauren (Ralph Lauren) Headlines

From GuruFocus

Q2 2023 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2023 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2021 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2020 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2019 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2019 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Ralph Lauren Corp Investor Day Transcript

By GuruFocus Research 01-23-2024