Tapestry Inc (TPR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 182.46 | 186.06 | 200.09 | 216.38 | 168.97 | 164.50 | 161.46 | 180.15 | 172.47 | 170.06 | 175.79 | 200.61 | 178.40 | 168.50 | 143.57 | 172.19 | 161.14 | 178.62 | 151.13 | 182.69 |
| Days of sales outstanding (DSO) | days | 12.46 | 28.24 | 30.41 | 29.67 | 25.41 | 27.20 | 26.44 | 27.99 | 11.59 | 24.30 | 13.99 | 14.67 | 13.78 | 22.80 | 11.22 | 14.27 | 28.89 | 29.64 | 26.06 | 19.19 |
| Number of days of payables | days | 96.69 | 83.77 | 109.68 | 114.19 | 92.64 | 74.47 | 90.60 | 73.88 | 78.20 | 60.26 | 78.67 | 89.92 | 93.43 | 88.38 | 89.63 | 87.12 | 97.63 | 104.45 | 92.39 | 66.66 |
| Cash conversion cycle | days | 98.23 | 130.52 | 120.82 | 131.86 | 101.74 | 117.22 | 97.29 | 134.26 | 105.86 | 134.10 | 111.11 | 125.35 | 98.74 | 102.91 | 65.17 | 99.35 | 92.40 | 103.81 | 84.80 | 135.22 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 182.46 + 12.46 – 96.69
= 98.23
The analysis of Tapestry Inc's cash conversion cycle (CCC) over the specified period reveals notable fluctuations and trends. Initially, the CCC decreased significantly from 135.22 days on September 30, 2020, to a low of 65.17 days on December 31, 2021, indicating improvements in operational efficiency and cash flow management during this period. This reduction suggests shorter inventory holding periods, faster receivables collection, and/or extended supplier terms.
However, post-December 2021, the CCC experienced periods of increase and fluctuation. It rose to approximately 102.91 days by March 31, 2022, and further to 125.35 days on September 30, 2022, indicating a slowdown in receivables collection, inventory turnover, or shorter supplier payment periods. The CCC remained elevated through 2022 and into the first half of 2023, reaching a peak of 134.26 days on September 30, 2023.
Subsequent quarters demonstrated a partial decline, with the CCC dropping to 97.29 days as of December 31, 2023, but increasing again to 117.22 days by March 31, 2024, and fluctuating around 101.74 days on June 30, 2024, and 131.86 days on September 30, 2024. The latest data indicates a slight decrease to 120.82 days on December 31, 2024, and a further decrease to 98.23 days on June 30, 2025, before rising again to 130.52 days as of March 31, 2025.
Overall, the pattern demonstrates periods of operational efficiency improvements punctuated by phases of elongation in the CCC. The cyclical nature suggests shifts in inventory management, receivables collection, or payment terms, which impact liquidity and overall working capital management. The recent trend indicates ongoing fluctuations, with the CCC remaining relatively elevated compared to the low point observed in late 2021.
Peer comparison
Jun 30, 2025