Tapestry Inc (TPR)
Working capital 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 |
| Total current assets | US$ in thousands | 2,905,600 | 8,803,700 | 2,363,500 | 2,573,800 | 3,375,300 |
| Total current liabilities | US$ in thousands | 1,556,900 | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 |
| Working capital turnover | 5.20 | 0.94 | 6.18 | 6.05 | 2.95 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,010,700K ÷ ($2,905,600K – $1,556,900K)
= 5.20
The working capital turnover ratios for Tapestry Inc over the specified periods demonstrate notable fluctuations. As of June 30, 2021, the ratio stood at 2.95, indicating that the company generated approximately 2.95 dollars of sales for every dollar of net working capital. This ratio increased significantly over the following year, reaching 6.05 in June 2022, and further rising marginally to 6.18 in June 2023, reflecting an improved efficiency in utilizing working capital to generate sales during this period.
However, in the subsequent year, the ratio declined sharply to 0.94 as of June 30, 2024, signaling a substantial decrease in sales efficiency relative to working capital. This decline suggests that the company's ability to leverage its working capital to generate sales was markedly diminished during this period, possibly due to operational challenges, inventory accumulation, or changes in the sales cycle.
By June 30, 2025, the ratio improved again to 5.20, indicating a significant recovery and a return to higher efficiency levels comparable to the earlier years. This rebound suggests that the company may have addressed some of the issues impacting working capital management or optimized its operational processes.
Overall, the data reflect a pattern of initial improvement in working capital efficiency up to 2023, followed by a notable decline in 2024, and subsequent recovery in 2025. These fluctuations underscore the importance of managing working capital effectively to sustain optimal sales performance.
Peer comparison
Jun 30, 2025