The Polo Company by Ralph Lauren is an American fashion designers line of luxury Lifestyle Company, which was owned by an American designer of fashion Ralph Lauren. Over the years, the entire Polo Ralph Lauren company had been one of the fashion innovators, which specializes in high end semiformal and casual wear for men and women, and produces quality fashion accessories, house wares and perfume/fragrances. Nevertheless, the company that was once humble in its beginning is now included to the global designers’ line of fashion to supply and provide its customer world wide with the latest and the hottest fashion trends in the market.As a leading fashion design company, the Polo Ralph Lauren Company had been providing the market a bunch of fashion choices through their products, which can be purchased through their fashion boutiques that are found globally.
From the year of their foundation in the year 1967, the fashion company by Ralph Lauren had been successful to sell and innovate in the fashion industry to be included to the top fashion designers’ line of company. However, apart from this these positive improvements the entire Polo Ralph Lauren Designer’s fashion Company had been through a series of financial growth from the last three years of operation. Basing on the ratio report of Polo Ralph Lauren Fashion Company, from the 2006 up to the 2007 the entire fashion company had recorded positive change in its Liquidity ratios. From the figure 1. 634 ratio in the 2006 the current ratio of the Company had amazingly increased to 2. 633 in the year 2007.
Moreover, from its former quick ratio of 1. 059 in the 2006 it is now 1. 81 by the year 2007. Cash ratio, on the other hand, had as well grown to 0. 15 from its previous count of 0. 0925.
For the same year 2007, the Polo Ralph Lauren Company had also experienced increased for its Leverage ratios, which achieved the o. 3787 growth, as compare 0. 364 from the previ0ous year. Dept equity ratio, however, had increased as well to 0. 6094 from 0. 5069.
Nevertheless, the equity multiplier or leverage ratio in total had increased by 1. 6094 from 1. 5069 in a span of 1 year. In terms of efficiency ratios, the Polo Ralph Lauren Company has been amazing to be consistent to record consistent growth from 2005 ratio report up to the 2007.
For the account receivable turnover, the company had constantly recorded increased of 7. 23 in the 2006 from 6. 716 in the 205 and an impressive 8. 682 in the year 2007.
DSO or days sales outstanding shares the same scenario of growth by 2639. in 2006 from 2451. 622 in 2005 and largely with 3168. 93 total DSO ratio in 2007.
Also, fixed assets turnover had increased by 1. 959 in 2007 from 1. 742 I 2006. In addition to this total assets turnover had grew to 1.
089 in the same year coming from 1. 1335 in 2006. Nonetheless, the Polo Ralph Lauren Company had increased inventory turnover ratio 3. 718 in 2007 as compare to the 3. 55 ration in 2006. Furthermore, the most significant profitability ratio had increased accordingly together with the other area on Polo Ralph Lauren Company ratio report in three years.
In gross profit margin, the company had recorded increased 50. 5% in 2006 coming from the 47. 04% ration in 2005, and with the satisfying 51. 80% ratio in 2007.Operating profit margin, on the other hand, had also achieved move on its ratios by 0. 1498 in 2006.
Also, net profit margin were also at the constant move on its ratio by 0. 0879 in 2006 from 0. 0622 in 2005, and with 0. 0987 in 2007. In addition to this, the return of assets ratio for the American fashion company had been fruitful for the last two years that they confirm a 0. 1066 ratio in 2007, as compare to the 0.
0997 in 2006. Nevertheless, the entire Polo Ralph Lauren Company had reached the 0. 716 increased in its return on equity ratio in the year 2007 coming from just 0. 15 ratios in 2006.In the end, with the clear and factual review in the Polo Ralph Lauren Fashion Company ratio report, it is visible enough to say that the company is definitely one of the strongest fashion companies in its respective industry, which the company had been through series of financial boom from their past three years of operation. Nevertheless, the constant ratio increase in the financial report of Polo Ralph Lauren Fashion Company strengthens the viability to invest in the company at present time is in great condition.