Tapestry Inc (TPR)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,010,700 | 6,878,600 | 6,776,400 | 6,665,500 | 6,671,200 | 6,699,600 | 6,726,700 | 6,667,600 | 6,660,900 | 6,666,300 | 6,594,300 | 6,710,100 | 6,684,500 | 6,675,000 | 6,510,800 | 6,055,000 | 5,746,300 | 4,845,700 | 4,645,100 | 4,775,700 |
| Total current assets | US$ in thousands | 2,905,600 | 2,861,400 | 2,772,000 | 9,145,500 | 8,803,700 | 8,997,000 | 9,042,500 | 2,409,000 | 2,363,500 | 2,218,900 | 2,498,600 | 2,387,400 | 2,573,800 | 2,558,600 | 3,058,500 | 3,086,200 | 3,375,300 | 2,896,600 | 2,877,200 | 2,845,500 |
| Total current liabilities | US$ in thousands | 1,556,900 | 1,627,900 | 1,751,000 | 1,853,800 | 1,711,600 | 1,365,900 | 1,447,600 | 1,194,200 | 1,286,500 | 1,146,100 | 1,338,600 | 1,308,400 | 1,468,800 | 1,733,300 | 1,843,700 | 1,646,600 | 1,425,800 | 1,291,100 | 1,533,100 | 1,819,000 |
| Working capital turnover | 5.20 | 5.58 | 6.64 | 0.91 | 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 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,010,700K ÷ ($2,905,600K – $1,556,900K)
= 5.20
The analysis of Tapestry Inc.'s working capital turnover over the periods provided reveals notable fluctuations indicative of shifts in operating efficiency and liquidity management.
From September 30, 2020, to March 31, 2022, the ratio exhibited a declining trend, decreasing from 4.65 to a low of 2.95. This suggests that the company's ability to generate sales per unit of working capital diminished during this period, potentially due to increased working capital levels, reduced sales efficiency, or both.
A subsequent period of improvement commenced, with the ratio rising to 5.36 by December 31, 2021, and sharply accelerating to a peak of 8.09 on March 31, 2022. This upward movement indicates enhanced efficiency in utilizing working capital to generate sales, possibly driven by operational improvements or strategic adjustments.
However, beginning in the fiscal quarter ending June 30, 2022, the ratio declined again, reaching 6.05 by June 30, 2022, and further down to 5.49 by September 30, 2023. These reductions may reflect challenges such as increased working capital levels, inventory buildup, or diminished sales relative to working capital investment.
A significant anomaly appears in the subsequent period, with the ratio dropping sharply to 0.89 on December 31, 2023, and maintaining a similar low level (0.88) by March 31, 2024. This sudden decline implies very low sales efficiency relative to working capital, potentially indicating liquidity or operational issues, or an abnormal change in the underlying balance sheet components.
Following this anomaly, the ratio shows signs of recovery, increasing to 0.94 by June 30, 2024, and surpassing 6.64 by December 31, 2024, indicating a substantial improvement in operational efficiency. The ratio then stabilizes around 5.20 to 5.58 through the subsequent periods, reflecting a relatively steady state of working capital management and sales performance.
Overall, the historical fluctuations in Tapestry Inc.'s working capital turnover demonstrate periods of both operational strength and challenges. The extraordinary low values at the end of 2023 may warrant further analysis into potential causes such as extraordinary expenses, impairments, or shifts in working capital structure. The recent recovery suggests an ongoing effort to restore efficiency, with the current ratios indicating a more typical operating performance compared to the earlier peaks and troughs.
Peer comparison
Jun 30, 2025