Tapestry Inc (TPR)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,781,700 | 1,828,600 | 1,864,800 | 1,909,600 | 1,946,000 | 2,004,900 | 2,026,100 | 2,073,800 | 2,034,100 | 1,977,700 | 1,906,700 | 1,734,600 | 1,664,400 | 1,431,000 | 1,526,100 | 1,620,700 | 1,722,100 | 2,020,700 | 1,979,700 | 1,970,700 |
| Inventory | US$ in thousands | 824,800 | 824,100 | 824,900 | 942,500 | 919,500 | 934,100 | 975,800 | 1,139,800 | 994,200 | 913,000 | 750,000 | 818,300 | 734,800 | 700,300 | 631,900 | 811,200 | 736,900 | 852,900 | 748,300 | 880,200 |
| Inventory turnover | 2.16 | 2.22 | 2.26 | 2.03 | 2.12 | 2.15 | 2.08 | 1.82 | 2.05 | 2.17 | 2.54 | 2.12 | 2.27 | 2.04 | 2.42 | 2.00 | 2.34 | 2.37 | 2.65 | 2.24 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,781,700K ÷ $824,800K
= 2.16
Inventory turnover is a crucial efficiency ratio that measures how many times a company's inventory is sold and replaced over a specific period. Tapestry Inc's inventory turnover has fluctuated over the past 20 quarters, ranging from a low of 1.82 to a high of 2.65. The trend indicates some variability in managing its inventory efficiently.
In the most recent quarter, June 30, 2024, Tapestry Inc achieved an inventory turnover of 2.16, slightly lower than the previous quarter's ratio of 2.22. While the ratio has shown some volatility, the overall trend suggests that the company is effectively managing its inventory turnover, with figures consistently above 2.0 for the majority of the periods.
A higher inventory turnover ratio generally indicates that a company is selling goods quickly and efficiently, which can lead to better cash flow and profitability. However, a very high turnover ratio could also indicate potential stockouts or lost sales due to insufficient inventory levels.
To provide a more precise analysis, it would be beneficial to compare Tapestry Inc's inventory turnover ratio with those of its industry peers or historical performance. Additionally, examining related ratios such as days inventory outstanding would provide further insights into the company's inventory management efficiency.
Peer comparison
Jun 30, 2024
Jun 30, 2024