Ralph Lauren Corporation (RL) sells apparel through company owned retail stores. Financial information for Ralph Lauren follows
Question:
Ralph Lauren Corporation (RL) sells apparel through company owned retail stores. Financial information for Ralph Lauren follows (in thousands):
Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders’ equity is 15.0% for the year ended April 2, Year 3.
a. Determine the return on total assets for Ralph Lauren for fiscal years 2 and 3.
b. Determine the return on stockholders’ equity for Ralph Lauren for fiscal years 2 and 3.
c. Evaluate the changes in the profitability ratios determined in (a) and (b).
d. Evaluate Ralph Lauren’s profit performance relative to the industry.
Net income Interest expense Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 3 $384,300 17,600 Fiscal Year 3 $7,279,900 2,693,300 Fiscal Year 2 $430,900 20,700 Fiscal Year 2 $5,942,800 3,287,200 Fiscal Year 1 $6,143,300 3,457,400
Step by Step Answer:
a Return on Total Assets Net Income Interest Expense Average Total Assets Fiscal Year 3 384300 17600 ...View the full answer
Financial And Managerial Accounting
ISBN: 9780357714041
16th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler
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