Tapestry Inc (TPR)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,671,200 | 6,660,900 | 6,684,500 | 5,746,300 | 4,961,400 |
| Total current assets | US$ in thousands | 8,803,700 | 2,363,500 | 2,573,800 | 3,375,300 | 2,553,100 |
| Total current liabilities | US$ in thousands | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 | 1,742,100 |
| Working capital turnover | 0.94 | 6.18 | 6.05 | 2.95 | 6.12 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,671,200K ÷ ($8,803,700K – $1,711,600K)
= 0.94
The working capital turnover ratio for Tapestry Inc has shown variability over the past five years. In 2024, the working capital turnover ratio stands at 0.94, indicating that the company's efficiency in utilizing its working capital to generate sales has decreased compared to the previous year. This decline may suggest that the company was not as effective in managing its working capital to support its operational activities and generate revenue.
Comparing this to the ratios in 2023 and 2022, where the working capital turnover ratios were 6.18 and 6.05 respectively, we see a significant drop in 2024. These higher ratios in the earlier years suggest that Tapestry Inc was more efficient in utilizing its working capital to generate sales during those periods.
However, when looking at the working capital turnover ratios for 2021 and 2020, which were 2.95 and 6.12 respectively, 2024 seems to fall in line with the performance seen in 2021. This indicates that the company's current working capital turnover ratio is somewhat similar to the level seen a few years ago.
Overall, the fluctuation in Tapestry Inc's working capital turnover ratio over the past five years may indicate varying levels of efficiency in managing working capital to support sales and operational activities. Further analysis would be needed to understand the factors influencing these changes and to determine the company's future performance prospects.
Peer comparison
Jun 30, 2024