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RL (Ralph Lauren) ROC (Joel Greenblatt) % : 37.11% (As of Sep. 2024)


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What is Ralph Lauren ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Ralph Lauren's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 37.11%.

The historical rank and industry rank for Ralph Lauren's ROC (Joel Greenblatt) % or its related term are showing as below:

RL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.79   Med: 33.62   Max: 48.24
Current: 40.41

During the past 13 years, Ralph Lauren's highest ROC (Joel Greenblatt) % was 48.24%. The lowest was -4.79%. And the median was 33.62%.

RL's ROC (Joel Greenblatt) % is ranked better than
88.89% of 1062 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 8.585 vs RL: 40.41

Ralph Lauren's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Ralph Lauren ROC (Joel Greenblatt) % Historical Data

The historical data trend for Ralph Lauren's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart

Ralph Lauren Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.86 -1.07 36.83 31.86 35.37

Ralph Lauren Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC (Joel Greenblatt) % 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 28.90 59.30 23.04 43.09 37.11

Competitive Comparison of Ralph Lauren's ROC (Joel Greenblatt) %

For the Apparel Manufacturing subindustry, Ralph Lauren's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Ralph Lauren's ROC (Joel Greenblatt) % falls into.



Ralph Lauren ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(371.8 + 1039.1 + 161.3) - (1271.9 + 18.3 + 28.3)
=253.7

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(517.9 + 1127.9 + 143.3) - (1387.1 + 15.7 + 30)
=356.3

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Ralph Lauren for the quarter that ended in Sep. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=798/( ( (1845.3 + max(253.7, 0)) + (1846 + max(356.3, 0)) )/ 2 )
=798/( ( 2099 + 2202.3 )/ 2 )
=798/2150.65
=37.11 %

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

* 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.


Ralph Lauren  (NYSE:RL) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Ralph Lauren ROC (Joel Greenblatt) % Related Terms

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


Ralph Lauren Business Description

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 merchandise in North America, Europe, and Asia. Best known for its iconic polo shirts, its products also include other types of 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
David R. Lauren director, officer: Vice Chair, Chief Innovation RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Jane Nielsen officer: Corp. Sr. Vice President, CFO 516 WEST 34TH STREET, NEW YORK NY 10001
Lauren Family, L.l.c. 10 percent owner 1065 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10018
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
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
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