Ralph Lauren Current Ratio vs. Current Liabilities

RL Stock  USD 187.76  1.26  0.68%   
Considering Ralph Lauren's profitability and operating efficiency indicators, Ralph Lauren's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Ralph Lauren's ability to earn profits and add value for shareholders.

Ralph Lauren Current Ratio

1.98

At this time, Ralph Lauren's Price To Sales Ratio is quite stable compared to the past year. Days Of Sales Outstanding is expected to rise to 40.70 this year, although the value of Operating Cash Flow Sales Ratio will most likely fall to 0.1. At this time, Ralph Lauren's Non Operating Income Net Other is quite stable compared to the past year. Change To Netincome is expected to rise to about 119.1 M this year, although the value of Operating Income will most likely fall to about 575.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.450.6068
Way Down
Slightly volatile
For Ralph Lauren profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ralph Lauren to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ralph Lauren Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ralph Lauren's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ralph Lauren Corp over time as well as its relative position and ranking within its peers.
  
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Is Ralph Lauren's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ralph Lauren. If investors know Ralph will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ralph Lauren listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.309
Dividend Share
3
Earnings Share
8.82
Revenue Per Share
100.56
Quarterly Revenue Growth
0.056
The market value of Ralph Lauren Corp is measured differently than its book value, which is the value of Ralph that is recorded on the company's balance sheet. Investors also form their own opinion of Ralph Lauren's value that differs from its market value or its book value, called intrinsic value, which is Ralph Lauren's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ralph Lauren's market value can be influenced by many factors that don't directly affect Ralph Lauren's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ralph Lauren's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ralph Lauren is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ralph Lauren's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ralph Lauren Corp Current Liabilities vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ralph Lauren's current stock value. Our valuation model uses many indicators to compare Ralph Lauren value to that of its competitors to determine the firm's financial worth.
Ralph Lauren Corp is rated second in current ratio category among related companies. It is rated second in current liabilities category among related companies creating about  596,019,900  of Current Liabilities per Current Ratio. At this time, Ralph Lauren's Current Ratio is quite stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ralph Lauren by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ralph Lauren's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ralph Lauren's earnings, one of the primary drivers of an investment's value.

Ralph Current Liabilities vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Ralph Lauren

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
2.01 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.

Ralph Lauren

Current Liabilities

 = 

Payables

+

Accrued Debt

 = 
1.2 B
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.

Ralph Current Liabilities Comparison

Ralph Lauren is currently under evaluation in current liabilities category among related companies.

Ralph Lauren Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ralph Lauren, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ralph Lauren will eventually generate negative long term returns. The profitability progress is the general direction of Ralph Lauren's change in net profit over the period of time. It can combine multiple indicators of Ralph Lauren, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-176.4 M-167.6 M
Operating Income809.8 M575.3 M
Income Before Tax795.7 M539.6 M
Total Other Income Expense Net-11.1 M-11.6 M
Net Income601.1 M368.2 M
Income Tax Expense194.6 M171.6 M
Net Income Applicable To Common Shares601.1 M397.9 M
Net Income From Continuing Ops470.4 M353.6 M
Non Operating Income Net Other32.3 M33.9 M
Interest Income29 M17.1 M
Net Interest Income-7.4 M-7.7 M
Change To Netincome95.1 M119.1 M
Net Income Per E B T 0.33  0.58 

Ralph Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ralph Lauren. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ralph Lauren position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ralph Lauren's important profitability drivers and their relationship over time.

Use Ralph Lauren in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ralph Lauren position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ralph Lauren will appreciate offsetting losses from the drop in the long position's value.

Ralph Lauren Pair Trading

Ralph Lauren Corp Pair Trading Analysis

The ability to find closely correlated positions to Ralph Lauren could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ralph Lauren when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ralph Lauren - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ralph Lauren Corp to buy it.
The correlation of Ralph Lauren is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ralph Lauren moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ralph Lauren Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ralph Lauren can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ralph Lauren position

In addition to having Ralph Lauren in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Artificial Intelligence
Artificial Intelligence Theme
Technology companies, funds, and ETFs across multiple industries that are involved in research or development in the field of reasoning, learning, natural language processing and perception as well as its application to science and commerce. This theme may also include entities involved in cybernetics and cognitive brain simulation field. The Artificial Intelligence theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Artificial Intelligence Theme or any other thematic opportunities.
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When determining whether Ralph Lauren Corp is a strong investment it is important to analyze Ralph Lauren's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ralph Lauren's future performance. For an informed investment choice regarding Ralph Stock, refer to the following important reports:
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You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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To fully project Ralph Lauren's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ralph Lauren Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ralph Lauren's income statement, its balance sheet, and the statement of cash flows.
Potential Ralph Lauren investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ralph Lauren investors may work on each financial statement separately, they are all related. The changes in Ralph Lauren's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ralph Lauren's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.