Question
Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Line Item Description Fiscal Year 3 Fiscal
Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Line Item Description Fiscal Year 3 Fiscal Year 2 Net income $384,300 $430,900 Interest expense 17,600 20,700 Line Item Description Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $7,279,900 $5,942,800 $6,143,300 Total stockholders' equity (at end of fiscal year) 2,693,300 3,287,200 3,457,400 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. Round your answers to one decimal place.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started