Financial Statement Analysis Project
Ralph Lauren Corporation
This project is designed to familiarize you with the Annual Report and Financial Statements
of a company called Ralph Lauren Corporation. The webpage of any company is always a
good place to start when you are looking for information. If the stock is publicly traded it
usually has a section for investors and sometimes you can find a link there to recent
financial statements. (https://www.ralphlauren.com)
Otherwise, SEC Edgar is a great place to find all the filings that a company has made with
the SEC. This is the website address:
http://www.sec.gov/edgar.shtml
Follow these steps:
1. Click “Search for company filings” then,
2. Click “Company or fund name, ticker symbol, CIK……” then
3. Type Company name “Ralph Lauren Corp” or Ticker Symbol “RL”
4. Go to the Form 10‐K for fiscal year ended on March 30, 2019 (filed on May 16,
2019)
Note: Our conventional practice is to define the fiscal year ended on March 30, 2019 as
“fiscal year 2018”, but the way that Ralph Lauren defined it in its 10‐K is “fiscal year 2019”
(page 3). To minimize any potential confusion you might have, let’s follow the definition
that Ralph Lauren used in its 10‐K for the project. For example, “year 2019” in questions
refers to the “fiscal year ended on March 30, 2019”, “year 2018” refers to the “fiscal year
ended on March 31, 2018”, and so on.
Please answer the following questions relating to the 10‐K of Ralph Lauren Corp.
A. What is the title of the Form 10‐K document?
B. What date was the 10‐K filed?
2
C. What business is Ralph Lauren in?
D. Name at least five brands of products that the company sells.
E. Name at least four risks that the company faces.
Go to the financial statements.
F. 1. What is Ralph Lauren’s Financial Leverage Ratio for 2019?
3
2. What does this ratio tell us about the amount of debt that is used by
company?
G. 1. What is Ralph Lauren’s Total Asset Turnover Ratio for 2019?
2. What does this ratio measure?
3. How would you go about determining whether this ratio reflects strong
or weak performance for this company?
4
H. 1. What is Ralph Lauren’s Net Profit Margin for 2019, 2018, and 2017?
2. What does this ratio measure?
3. How is Ralph Lauren’s performance on this measure in 2019 relative to
the other years (better or worse)?
I. 1. What is Ralph Lauren’s Return on Equity (ROE) for 2019?
2. What does this ratio measure?
5
3. If you could take a look at another company’s ROE to compare to Ralph
L Lauren’s, what company would you choose?
J. 1. What is Ralph Lauren’s current ratio for 2019 and 2018?
2. What does this ratio measure?
3. How is Ralph Lauren’s 2019 performance on this measure relative to
2018?
6
K. 1. What are Ralph Lauren’s basic net income per common share for 2019,
2 2018, and 2017?
2. Has there been a good or poor trend in this measure? Explain.
Look in the Notes to the Financial Statements.
L. 1. What depreciation method does Ralph Lauren use?
2. What inventory method does Ralph Lauren use?
