Tapestry Inc (TPR)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,100,000 | 6,142,000 | 726,100 | 789,800 | 2,015,800 |
| Short-term investments | US$ in thousands | 19,600 | 1,061,800 | 15,400 | 163,400 | 8,100 |
| Total current liabilities | US$ in thousands | 1,556,900 | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 |
| Cash ratio | 0.72 | 4.21 | 0.58 | 0.65 | 1.42 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,100,000K
+ $19,600K)
÷ $1,556,900K
= 0.72
The cash ratio of Tapestry Inc., spanning the fiscal years from June 30, 2021, to June 30, 2025, exhibits notable fluctuations over the specified period. At the end of June 2021, the company's cash ratio stood at 1.42, indicating a robust liquidity position characterized by ample cash and cash equivalents relative to its current liabilities. However, this metric experienced a significant decline by June 30, 2022, dropping to 0.65, and further decreasing to 0.58 by June 30, 2023. These declines suggest a reduction in the company's immediate liquidity cushion relative to its short-term obligations.
A marked turnaround is observed in the fiscal year ending June 30, 2024, when the cash ratio surged to 4.21. This substantial increase positions Tapestry Inc. with a considerable liquidity buffer, implying that cash and cash equivalents substantially exceeded current liabilities during that period. The subsequent year, June 30, 2025, shows a decrease to 0.72, yet it remains above the conservative threshold of 0.50, indicating a sufficient level of liquidity to meet short-term liabilities.
Overall, the cash ratio trend reflects periods of liquidity tightening followed by a significant enhancement, then a modest decline. The elevated cash ratio in 2024 suggests a strategic accumulation of cash assets or changes in current liabilities, while the earlier periods indicate more moderate liquidity levels. It is important to consider these fluctuations when assessing the company's financial flexibility and short-term financial health.
Peer comparison
Jun 30, 2025