Tapestry Inc (TPR)
Fixed asset turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,671,200 | 6,699,600 | 6,726,700 | 6,667,600 | 6,660,900 | 6,666,300 | 6,594,300 | 6,710,100 | 6,684,500 | 6,675,000 | 6,510,800 | 6,055,000 | 5,746,300 | 4,845,700 | 4,645,100 | 4,775,700 | 4,961,400 | 5,760,300 | 6,019,000 | 6,003,800 |
| Property, plant and equipment | US$ in thousands | 514,100 | 518,400 | 539,200 | 539,600 | 563,300 | 576,800 | 569,500 | 524,600 | 542,500 | 574,500 | 645,500 | 654,700 | 675,500 | 673,800 | 730,200 | 753,000 | 775,200 | 818,700 | 886,300 | 889,300 |
| Fixed asset turnover | 12.98 | 12.92 | 12.48 | 12.36 | 11.82 | 11.56 | 11.58 | 12.79 | 12.32 | 11.62 | 10.09 | 9.25 | 8.51 | 7.19 | 6.36 | 6.34 | 6.40 | 7.04 | 6.79 | 6.75 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,671,200K ÷ $514,100K
= 12.98
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.
Analyzing Tapestry Inc's fixed asset turnover ratio from the provided data, we can observe a general increasing trend over the past several quarters. The ratio has improved consistently from 6.34 in March 2020 to 12.98 in June 2024, indicating a significant enhancement in the company's efficiency in generating sales from its fixed assets.
This improvement suggests that Tapestry Inc has been able to generate a higher volume of sales relative to its investment in fixed assets, reflecting better asset utilization and operational efficiency. The company's management may have implemented strategies to optimize the use of its fixed assets, resulting in increased productivity and profitability.
Overall, the upward trend in Tapestry Inc's fixed asset turnover ratio is a positive indication of the company's effectiveness in managing and utilizing its fixed assets to drive revenue growth and operational performance.
Peer comparison
Jun 30, 2024