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GuruFocus has detected 5 Warning Signs with Ralph Lauren Corp \$RL.
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Ralph Lauren Corp (NYSE:RL)
Debt-to-Equity
0.24 (As of Dec. 2016)

Ralph Lauren Corp's current portion of long-term debt for the quarter that ended in Dec. 2016 was \$22 Mil. Ralph Lauren Corp's long-term debt for the quarter that ended in Dec. 2016 was \$841 Mil. Ralph Lauren Corp's total equity for the quarter that ended in Dec. 2016 was \$3,610 Mil. Ralph Lauren Corp's debt to equity for the quarter that ended in Dec. 2016 was 0.24.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Ralph Lauren Corp's Debt to Equity Ratio for the fiscal year that ended in Mar. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (137 + 863) / 3744 = 0.27

Ralph Lauren Corp's Debt to Equity Ratio for the quarter that ended in Dec. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (22 + 841) / 3610 = 0.24

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Ralph Lauren Corp Annual Data

 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 deb2equity 0.19 0.32 0.16 0.10 0.10 0.08 0.08 0.14 0.20 0.27

Ralph Lauren Corp Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 deb2equity 0.19 0.17 0.20 0.18 0.27 0.24 0.27 0.27 0.27 0.24
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