Tapestry Inc (TPR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 29.23 | 24.21 | 27.39 | 25.18 | 31.49 | — | 26.09 | — | 26.49 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Working capital turnover | 0.94 | 0.88 | 0.89 | 5.49 | 6.18 | 6.21 | 5.68 | 6.22 | 6.05 | 8.09 | 5.36 | 4.21 | 2.95 | 3.02 | 3.46 | 4.65 | 6.12 | 5.80 | 4.78 | 6.05 |
The inventory turnover ratio for Tapestry Inc has fluctuated over the periods analyzed, ranging from a low of 1.82 to a high of 2.65. This ratio indicates the company's ability to convert its inventory into sales and is trending downwards, suggesting a possible inefficiency in managing inventory levels.
The receivables turnover ratio has also varied significantly, reaching a high of 31.49 in one period. This ratio reflects how quickly the company collects payments from its customers and generally, higher values are preferable as they indicate better liquidity and efficient credit management. However, the inconsistency in data availability for this ratio makes it challenging to draw concrete conclusions.
On the other hand, the payables turnover ratio has shown more stability, with values ranging from 3.49 to 13.17. A higher value for this ratio indicates that the company is paying its suppliers more quickly, which can impact its working capital management and relationships with suppliers.
The working capital turnover ratio has displayed notable fluctuations, indicating changes in how efficiently the company is generating revenue from its working capital. Higher values suggest better utilization of resources to generate sales, while lower values may signal inefficiencies or potential cash flow issues.
In summary, Tapestry Inc's activity ratios reflect fluctuations and potential areas for improvement in managing inventory, receivables, payables, and working capital to enhance operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 168.97 | 164.50 | 161.46 | 180.15 | 172.47 | 170.06 | 175.79 | 200.61 | 178.40 | 168.50 | 143.57 | 172.19 | 161.14 | 178.62 | 151.13 | 182.69 | 156.19 | 154.06 | 137.97 | 163.02 |
| Days of sales outstanding (DSO) | days | 12.49 | 15.07 | 13.33 | 14.50 | 11.59 | — | 13.99 | — | 13.78 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 92.64 | 74.47 | 90.60 | 73.88 | 78.20 | 60.26 | 78.67 | 89.92 | 93.43 | 88.38 | 89.63 | 87.12 | 97.63 | 104.45 | 92.39 | 66.66 | 27.72 | 36.14 | 46.54 | 47.10 |
The analysis of Tapestry Inc's activity ratios over the past several quarters reveals fluctuations in its operational efficiency.
1. Days of Inventory on Hand (DOH): The company's inventory turnover has shown variability, with the number of days of inventory on hand ranging from a low of 137.97 days to a high of 200.61 days. Compared to the previous quarter, there has been an increase in the days of inventory on hand, indicating that inventory is taking longer to sell, which might tie up more capital.
2. Days of Sales Outstanding (DSO): The days of sales outstanding have also fluctuated, with numbers of days ranging from 11.59 days to 15.07 days. While the latest quarter shows a lower DSO compared to the previous quarter, indicating faster collection of receivables, there are missing data points throughout, making it difficult to track a consistent trend.
3. Number of Days of Payables: Tapestry Inc's days of payables have varied significantly, with a range from 27.72 days to 104.45 days. The variability in this ratio implies fluctuations in the company's payment practices with suppliers. Notably, the days of payables have been relatively lower in recent quarters, suggesting the company is paying its bills more promptly.
Overall, Tapestry Inc's activity ratios reflect mixed trends in inventory management, accounts receivable collection, and accounts payable practices. It is important for the company to continue monitoring and managing these ratios effectively to optimize working capital and improve overall operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 12.98 | 12.92 | 12.48 | 12.36 | 11.82 | 11.56 | 11.58 | 12.79 | 12.32 | 11.62 | 10.09 | 9.25 | 8.51 | 7.19 | 6.36 | 6.34 | 6.40 | 7.04 | 6.79 | 6.75 |
| Total asset turnover | 0.50 | 0.49 | 0.49 | 0.93 | 0.94 | 0.95 | 0.91 | 0.95 | 0.92 | 0.91 | 0.82 | 0.76 | 0.69 | 0.61 | 0.57 | 0.59 | 0.63 | 0.74 | 0.69 | 0.71 |
The fixed asset turnover ratio for Tapestry Inc has shown variability over the past several quarters, ranging from a low of 6.36 to a high of 12.98. This ratio measures how effectively the company is utilizing its fixed assets to generate sales revenue, with higher ratios indicating better efficiency. The recent trend suggests an improvement in the utilization of fixed assets, reaching a peak of 12.98 in the most recent quarter.
On the other hand, the total asset turnover ratio has also displayed fluctuations, ranging from 0.57 to 0.95 over the same period. This ratio evaluates the company's overall efficiency in generating sales from its total assets, including both fixed and current assets. The ratios have been relatively stable around the 0.9 to 1 range, with a notable decline in the ratio to 0.57 in one quarter followed by a subsequent recovery to 0.93.
Both ratios indicate the company's ability to generate sales relative to its asset base. A higher fixed asset turnover suggests that Tapestry Inc is efficiently using its fixed assets to drive sales, while the total asset turnover ratio provides a broader perspective on overall asset utilization. Monitoring these ratios over time can provide insights into the company's operational and strategic performance.