Tapestry Inc (TPR)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,721,800 | 1,781,700 | 1,946,000 | 2,034,100 | 1,664,400 |
| Payables | US$ in thousands | 456,100 | 452,200 | 416,900 | 520,700 | 445,200 |
| Payables turnover | 3.78 | 3.94 | 4.67 | 3.91 | 3.74 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,721,800K ÷ $456,100K
= 3.78
The payables turnover ratio for Tapestry Inc has exhibited fluctuations over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 3.74 in 2021 to 3.91 in 2022, indicating a slight improvement in the company's efficiency in paying its suppliers. This suggests a marginally faster turnover of trade payables, potentially reflecting better management of trade liabilities or improved liquidity positions.
However, the upward trend was not sustained, as the ratio continued to rise substantially to 4.67 in 2023, representing a marked increase in the payables turnover. This higher ratio could imply that the company is paying its suppliers more quickly than in previous years, possibly due to increased cash flows, improved payment policies, or a strategic decision to maintain strong supplier relationships.
Subsequently, the ratio declined to 3.94 in 2024 and further to 3.78 in 2025. These decreases suggest a slowdown in the payables turnover rate, indicating that Tapestry Inc may be taking longer to settle its trade payables relative to the previous year. This trend might reflect changes in payment terms, extended credit periods negotiated with suppliers, or a temporary increase in working capital requirements.
Overall, while the payables turnover ratio experienced periods of increase, particularly in 2023, the recent decline suggests a tendency towards lengthening the payables period. This pattern warrants monitoring, as significant changes could impact the company's liquidity and supplier relationships.
Peer comparison
Jun 30, 2025