Tapestry Inc (TPR)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,142,000 | 726,100 | 789,800 | 2,007,700 | 1,426,300 |
| Short-term investments | US$ in thousands | 1,061,800 | 15,400 | 163,400 | 8,100 | 8,100 |
| Total current liabilities | US$ in thousands | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 | 1,742,100 |
| Cash ratio | 4.21 | 0.58 | 0.65 | 1.41 | 0.82 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,142,000K
+ $1,061,800K)
÷ $1,711,600K
= 4.21
The cash ratio is calculated by dividing a company's cash and cash equivalents by its current liabilities. A higher cash ratio indicates that a company has more cash on hand relative to its current liabilities, which may suggest a stronger ability to cover its short-term obligations.
Analyzing Tapestry Inc's cash ratio over the past five years, we observe fluctuations in the ratio. In June 2024, the cash ratio stood at 4.21, significantly higher than in the previous years. This indicates that Tapestry Inc had a substantial amount of cash and cash equivalents relative to its current liabilities in 2024, reflecting improved liquidity and a strong ability to meet short-term obligations.
In contrast, the cash ratio was lower in June 2023 and June 2022 at 0.58 and 0.65, respectively. This suggests that Tapestry Inc had relatively less cash on hand compared to its current liabilities in those years, potentially indicating a tighter liquidity position and a lesser ability to cover short-term obligations.
The cash ratio improved in June 2021 and June 2020 compared to the previous years, reaching 1.41 and 0.82, respectively. These ratios indicate that Tapestry Inc had a better ability to cover its short-term obligations in those years relative to the amount of cash it held.
Overall, the trend in Tapestry Inc's cash ratio fluctuates over the five-year period, with the highest ratio observed in 2024, indicating improved liquidity, while the lowest ratios were seen in 2023 and 2022, suggesting lower cash reserves relative to current liabilities in those years. This analysis highlights the importance of monitoring a company's cash ratio to assess its liquidity position and ability to meet short-term financial commitments.
Peer comparison
Jun 30, 2024