Tapestry Inc (TPR)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,671,200 | 6,660,900 | 6,684,500 | 5,746,300 | 4,961,400 |
| Property, plant and equipment | US$ in thousands | 514,100 | 563,300 | 542,500 | 675,500 | 775,200 |
| Fixed asset turnover | 12.98 | 11.82 | 12.32 | 8.51 | 6.40 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,671,200K ÷ $514,100K
= 12.98
The fixed asset turnover ratio for Tapestry Inc has exhibited a generally increasing trend over the past five years, indicating an improvement in how efficiently the company is generating revenue from its fixed assets.
In particular, the fixed asset turnover ratio has increased from 6.40 in Jun 30, 2020, to 12.98 in Jun 30, 2024. This significant improvement suggests that Tapestry has been able to generate more sales revenue relative to its investment in fixed assets over this period.
The consistently high fixed asset turnover ratios in the most recent years (12.98 in 2024, 11.82 in 2023, and 12.32 in 2022) indicate that Tapestry has been effectively utilizing its fixed assets to drive revenue generation. This efficiency is a positive indicator of the company's operational performance and effective management of its asset base.
Overall, the increasing trend in fixed asset turnover for Tapestry Inc reflects the company's ability to efficiently utilize its fixed assets to generate revenue, which can potentially lead to improved profitability and shareholder value over time.
Peer comparison
Jun 30, 2024