Ralph Lauren (Ralph Lauren) Interest Coverage

: 30.04 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ralph Lauren's Operating Income for the three months ended in Dec. 2023 was $318 Mil. Ralph Lauren's Interest Expense for the three months ended in Dec. 2023 was $-11 Mil. Ralph Lauren's interest coverage for the quarter that ended in Dec. 2023 was 30.04. The higher the ratio, the stronger the company's financial strength is.

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

RL' s Interest Coverage Range Over the Past 10 Years
Min: 4.6 Med: 35.36 Max: 63.02
Current: 20.08

RL's Interest Coverage is ranked better than
75.49% of 710 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.35 vs RL: 20.08

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ralph Lauren Interest Coverage Historical Data

The historical data trend for Ralph Lauren's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ralph Lauren Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

34.67

23.63

4.60

15.59

18.74

Ralph Lauren Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																24.16	10.23	19.69	16.93	30.04

Competitive Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Ralph Lauren's Interest Coverage falls into.

Ralph Lauren Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ralph Lauren's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Ralph Lauren's Interest Expense was $-40 Mil. Its Operating Income was $757 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,595 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	756.9	/	-40.4
	=	18.74

Ralph Lauren's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Ralph Lauren's Interest Expense was $-11 Mil. Its Operating Income was $318 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,479 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	318.4	/	-10.6
	=	30.04

The higher the ratio, the stronger the company's Financial Strength is.

Ralph Lauren (NYSE:RL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ralph Lauren Interest Coverage Related Terms

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

Ralph Lauren (Ralph Lauren) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

RL:Mexico PRL:Germany PRL:Germany

Address

650 Madison Avenue, New York, NY, USA, 10022

Website

https://www.ralphlauren.com

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