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Ralph Lauren (Ralph Lauren) Interest Coverage : 30.04 (As of Dec. 2023)


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What is Ralph Lauren Interest Coverage?

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
75.53% of 711 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.

* Premium members only.

Ralph Lauren Interest Coverage Chart

Ralph Lauren Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 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 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 24.16 10.23 19.69 16.93 30.04

Competitive Comparison of Ralph Lauren's Interest Coverage

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's Interest Coverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

* 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.

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

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

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