Tapestry Inc (TPR)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 182.46 | 168.97 | 172.47 | 178.40 | 161.14 |
| Days of sales outstanding (DSO) | days | 12.46 | 25.41 | 11.59 | 13.78 | 12.72 |
| Number of days of payables | days | 96.69 | 92.64 | 78.20 | 93.43 | 97.63 |
| Cash conversion cycle | days | 98.23 | 101.74 | 105.86 | 98.74 | 76.23 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 182.46 + 12.46 – 96.69
= 98.23
The data indicate that Tapestry Inc's cash conversion cycle (CCC) has exhibited variability over the period from June 2021 to June 2025. Specifically, the CCC increased from 76.23 days in June 2021 to 98.74 days in June 2022, reflecting a significant elongation of the period it takes for the company to convert its investments in inventory and receivables back into cash.
This upward trend continued into June 2023, with the cycle reaching 105.86 days, representing an approximate 7-day increase from the previous year. The extension suggests that the company experienced delays or inefficiencies in managing its working capital components during this period. Factors contributing to a longer CCC typically include extended days inventory outstanding (DIO) or days sales outstanding (DSO), or decreased days payable outstanding (DPO).
Subsequently, the CCC showed a slight reduction to 101.74 days in June 2024, indicating a modest improvement or stabilization in the operational cycle. By June 2025, the cycle further contracted to 98.23 days, approaching levels observed in 2022 but still remaining elevated relative to 2021.
Overall, the trend demonstrates an initial increase in the cash conversion cycle followed by partial recovery, which may point to efforts to improve working capital management or changes in operational efficiency. The cyclical broadening of the CCC suggests sustained challenges in inventory and receivables management, impacting the company's liquidity and operational efficiency over the analyzed period.
Peer comparison
Jun 30, 2025