GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Ralph Lauren Corp (NYSE:RL) » Definitions » Altman Z-Score
中文

Ralph Lauren (Ralph Lauren) Altman Z-Score : 4.49 (As of Apr. 25, 2024)


View and export this data going back to 1997. Start your Free Trial

What is Ralph Lauren Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.49 is strong.

Ralph Lauren has a Altman Z-Score of 4.49, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Ralph Lauren's Altman Z-Score or its related term are showing as below:

RL' s Altman Z-Score Range Over the Past 10 Years
Min: 2.5   Med: 4.46   Max: 7.71
Current: 4.49

During the past 13 years, Ralph Lauren's highest Altman Z-Score was 7.71. The lowest was 2.50. And the median was 4.46.


Ralph Lauren Altman Z-Score Historical Data

The historical data trend for Ralph Lauren's Altman Z-Score 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 Altman Z-Score Chart

Ralph Lauren Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.58 3.00 3.01 3.51 4.04

Ralph Lauren Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score 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 3.80 4.04 4.08 4.08 4.28

Competitive Comparison of Ralph Lauren's Altman Z-Score

For the Apparel Manufacturing subindustry, Ralph Lauren's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Ralph Lauren's Altman Z-Score falls into.



Ralph Lauren Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Ralph Lauren's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.28+1.4*1.0006+3.3*0.1075+0.6*2.4259+1.0*0.9429
=4.49

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $7,005 Mil.
Total Current Assets was $3,639 Mil.
Total Current Liabilities was $1,678 Mil.
Retained Earnings was $7,008 Mil.
Pre-Tax Income was 329.8 + 165.5 + 170.6 + 49.2 = $715 Mil.
Interest Expense was -10.6 + -10 + -10 + -7.1 = $-38 Mil.
Revenue was 1934 + 1633 + 1496.5 + 1540.8 = $6,604 Mil.
Market Cap (Today) was $10,753 Mil.
Total Liabilities was $4,433 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3639.4 - 1678.2)/7004.5
=0.28

X2=Retained Earnings/Total Assets
=7008.4/7004.5
=1.0006

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(715.1 - -37.7)/7004.5
=0.1075

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=10752.918/4432.6
=2.4259

X5=Revenue/Total Assets
=6604.3/7004.5
=0.9429

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Ralph Lauren has a Altman Z-Score of 4.49 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Ralph Lauren  (NYSE:RL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Ralph Lauren Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Ralph Lauren's Altman Z-Score 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

Ralph Lauren (Ralph Lauren) Headlines

From GuruFocus

Q1 2024 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2021 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2023 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2020 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Ralph Lauren Corp Investor Day Transcript

By GuruFocus Research 01-23-2024

Q1 2020 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2022 Ralph Lauren Corp Earnings Call Transcript

By GuruFocus Research 01-23-2024