Tapestry Inc (TPR)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,781,700 | 1,946,000 | 2,034,100 | 1,664,400 | 1,722,100 |
| Inventory | US$ in thousands | 824,800 | 919,500 | 994,200 | 734,800 | 736,900 |
| Inventory turnover | 2.16 | 2.12 | 2.05 | 2.27 | 2.34 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,781,700K ÷ $824,800K
= 2.16
Inventory turnover is a key financial ratio that indicates how efficiently a company manages its inventory levels. It is calculated by dividing the cost of goods sold by the average inventory for a specific period.
Analyzing Tapestry Inc's inventory turnover over the past five years, we observe a fluctuating trend. The inventory turnover ratio has ranged from 2.05 to 2.34 during this period. A higher inventory turnover ratio indicates that a company is selling its inventory more quickly, which is generally seen as a positive sign of operational efficiency.
In the case of Tapestry Inc, the inventory turnover ratio has averaged around 2.19 over the five-year period. This suggests that the company is able to turn over its inventory approximately two times a year on average. A relatively stable inventory turnover ratio indicates a consistent approach to managing inventory levels.
It is important to note that inventory turnover ratios can vary across industries, and comparisons should be made with companies within the same sector for a more meaningful assessment of efficiency in managing inventory. Additional analysis of inventory holding costs, liquidity constraints, and industry trends would provide a more comprehensive view of Tapestry Inc's inventory management performance.
Peer comparison
Jun 30, 2024