Tapestry Inc (TPR)
Payables 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 |
| Payables | US$ in thousands | 452,200 | 373,100 | 462,900 | 386,500 | 416,900 | 331,000 | 436,700 | 510,900 | 520,700 | 478,900 | 468,200 | 414,000 | 445,200 | 409,500 | 386,300 | 296,000 | 130,800 | 200,100 | 252,400 | 254,300 |
| Payables turnover | 3.94 | 4.90 | 4.03 | 4.94 | 4.67 | 6.06 | 4.64 | 4.06 | 3.91 | 4.13 | 4.07 | 4.19 | 3.74 | 3.49 | 3.95 | 5.48 | 13.17 | 10.10 | 7.84 | 7.75 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,781,700K ÷ $452,200K
= 3.94
The payables turnover ratio for Tapestry Inc has fluctuated over the past few quarters. In the most recent quarter ending June 30, 2024, the payables turnover ratio was 3.94, indicating that the company took approximately 3.94 times to pay off its suppliers during that period.
The trend in the payables turnover ratio shows a general decrease from the high of 13.17 in the quarter ending September 30, 2020. This decreasing trend suggests that Tapestry Inc has been taking longer to pay off its suppliers in recent quarters.
A lower payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which may be a strategy to manage cash flow or negotiate more favorable payment terms. However, a consistently low payables turnover ratio could also signal potential liquidity issues or strained supplier relationships.
It is important for Tapestry Inc to closely monitor its payables turnover ratio and ensure that payment practices are aligned with supplier agreements and industry norms to maintain a healthy working capital cycle.
Peer comparison
Jun 30, 2024