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Rlc Financial Analysis

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Submitted By mlopez26
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From it’s small beginnings with the launch of a men’s tie line in 1967, Ralph Lauren Corporation- a publically traded retail chain that designs, distributes and markets lifestyle products across the globe- has become one of the most well known brands in the world. With products spreading across multiple categories, such as apparel, home, accessories, and fragrances, Ralph Lauren is a leading competitor in its markets. Apparel products include men’s, women’s, and children’s clothing and footwear, home products range from bedding to furniture and wallpaper, accessories include luggage and handbags, and fragrances include their line of both men and woman’s scents. Because of its large brand presence amongst multiple product categories Ralph Lauren has multiple competitors, some if the largest being luxury brands Lacoste, Armani Exchange, J.Crew, and Michael Kors.
Over the past three years, Ralph Lauren’s current ratios and quick ratios have been higher than the industry averages of 1.76 and .72. The company has seen current ratios of 2.98 in 2011, 3.06 in 2012, and 2.64 in 2013, and quick ratios of 1.86, 1.85, and 1.62. Having such high quick and current ratios that fall well above industry norms is an indicator that Ralph Lauren has a high level of liquidity, and they have more than enough current assets on hand to be able to pay back their short-term liabilities. Ralph Lauren’s return on assets started slightly below the industry norm of 12.8 in 2011 at 11.79, but then surpassed it in 2012 and 2013 with ROA’s of 13.10 and 13.84. Falling above the industry norm shows that the company is now earning more money on less investment and has become more profitable. Ralph Lauren’s profitability is also seen through its high return on equity of 17.68 in 2011, 19.58 in 2012, and 20.17 in 2013, showing that the company is generating more profit from the money the shareholders

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