Switch to:
GuruFocus has detected 6 Warning Signs with Ralph Lauren Corp $RL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Ralph Lauren Corp (NYSE:RL)
Debt-to-Equity
0.26 (As of Mar. 2017)

Ralph Lauren Corp's current portion of long-term debt for the quarter that ended in Mar. 2017 was $23 Mil. Ralph Lauren Corp's long-term debt for the quarter that ended in Mar. 2017 was $839 Mil. Ralph Lauren Corp's total equity for the quarter that ended in Mar. 2017 was $3,300 Mil. Ralph Lauren Corp's debt to equity for the quarter that ended in Mar. 2017 was 0.26.

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. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(22.6 + 839.1) / 3299.6
=0.26

Ralph Lauren Corp's Debt to Equity Ratio for the quarter that ended in Mar. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(22.6 + 839.1) / 3299.6
=0.26

* 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

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


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

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
deb2equity 0.320.150.100.100.080.070.140.200.270.26

Ralph Lauren Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
deb2equity 0.170.200.180.270.240.270.270.270.240.26
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

FEEDBACK