Tapestry Inc (TPR)
Payables 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 |
| Payables | US$ in thousands | 452,200 | 416,900 | 520,700 | 445,200 | 130,800 |
| Payables turnover | 3.94 | 4.67 | 3.91 | 3.74 | 13.17 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,781,700K ÷ $452,200K
= 3.94
Tapestry Inc's payables turnover has seen fluctuations over the past five years. The payables turnover ratio indicates how efficiently a company pays its suppliers. A higher ratio suggests that the company is paying its suppliers more quickly.
In this case, Tapestry Inc's payables turnover ratio has been relatively stable, with a peak of 13.17 in 2020, which may have been influenced by specific factors in that year. The ratio decreased in the following years, indicating a slower rate of paying suppliers.
Overall, the downward trend in payables turnover from 2020 to 2023 may suggest that Tapestry Inc took longer to pay its suppliers during those years. However, the slight increase in 2024 compared to 2023 indicates an improvement in the efficiency of paying suppliers. Further analysis and evaluation of the company's payment practices and relationships with suppliers would provide more insights into the reasons behind these trends.
Peer comparison
Jun 30, 2024