Tapestry Inc (TPR)
Receivables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,010,700 | 6,671,200 | 6,660,900 | 6,684,500 | 5,746,300 |
| Receivables | US$ in thousands | 239,300 | 464,400 | 211,500 | 252,300 | 200,200 |
| Receivables turnover | 29.30 | 14.37 | 31.49 | 26.49 | 28.70 |
June 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,010,700K ÷ $239,300K
= 29.30
The receivables turnover ratio for Tapestry Inc. over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations. The ratio was 28.70 in fiscal year 2021, indicating that the company collected receivables approximately 28.7 times during that year. In the subsequent year, 2022, there was a slight decrease to 26.49, suggesting a marginal slowdown in receivable collections.
By fiscal year 2023, the receivables turnover increased to 31.49, reflecting a more efficient collection process or a shift in credit policies that enabled faster accounts receivable turnover. However, this positive trend was interrupted in fiscal year 2024, where the ratio experienced a significant decline to 14.37. This sharp decrease indicates a substantial slowdown in receivable collections, potentially due to factors such as extended credit terms, increased customer delinquencies, or issues within the accounts receivable management process.
The ratio then rebounded considerably in fiscal year 2025 to 29.30, nearly returning to the high levels observed in 2021 and 2023. This resurgence suggests an improvement in collection efficiency or a strategic adjustment in credit policies that facilitated faster receivables turnover.
Overall, the trend reflects periods of both efficiency and challenge in managing receivables, with notable volatility particularly in 2024. The fluctuations could impact cash flow management and working capital requirements, emphasizing the importance for the company to monitor and optimize its receivables collection processes continuously.
Peer comparison
Jun 30, 2025