Tapestry Inc (TPR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,119,600 | 1,037,700 | 983,400 | 6,462,900 | 6,142,000 | 6,975,100 | 6,833,100 | 622,100 | 726,100 | 637,200 | 830,200 | 526,500 | 789,800 | 806,000 | 1,257,400 | 1,252,600 | 2,007,700 | 1,651,700 | 1,642,600 | 1,513,900 |
| Short-term investments | US$ in thousands | 19,600 | 19,300 | 19,600 | 842,300 | 1,061,800 | 442,900 | 629,200 | 16,700 | 15,400 | 14,600 | 16,000 | 30,600 | 163,400 | 267,000 | 390,300 | 402,600 | 8,100 | 7,500 | 9,200 | 8,500 |
| 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 |
| Cash ratio | 0.73 | 0.65 | 0.57 | 3.94 | 4.21 | 5.43 | 5.15 | 0.53 | 0.58 | 0.57 | 0.63 | 0.43 | 0.65 | 0.62 | 0.89 | 1.01 | 1.41 | 1.29 | 1.08 | 0.84 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,119,600K
+ $19,600K)
÷ $1,556,900K
= 0.73
The analysis of Tapestry Inc's cash ratio over the period from September 30, 2020, to June 30, 2025, reveals noteworthy fluctuations in liquidity.
During the initial period ending September 30, 2020, the cash ratio stood at 0.84, indicating that the company's cash and cash equivalents covered approximately 84% of its current liabilities, reflecting a relatively strong liquidity position. The ratio increased subsequently, reaching a peak of 1.41 on June 30, 2021, suggesting an improving liquidity stance where cash and equivalents exceeded current liabilities.
However, from this peak, a downward trend is observed, with the cash ratio declining over the next periods to 0.43 by September 30, 2022. This decrease indicates a reduced cash cushion relative to current liabilities, possibly implying increased investment activity, higher working capital utilization, or lower cash holdings.
The ratio then saw slight recoveries, reaching 0.63 by December 31, 2022, and maintaining within a similar range through March and June 2023. During this timeframe, the company maintained a moderate liquidity profile, with cash holdings covering roughly half of current liabilities.
A significant change occurs at the end of 2023, where the cash ratio jumps dramatically to 5.15 on December 31, 2023. This indicates that the company's cash and cash equivalents were more than five times its current liabilities, representing an exceptionally strong liquidity position. The subsequent quarters continued with high ratios of 5.43 and 4.21, respectively, before declining again to 3.94 on September 30, 2024. Despite this decline, the ratio remained significantly elevated relative to historical levels.
By the end of the analyzed period, the cash ratio decreased to 0.57 on December 31, 2024, and showed minor fluctuations thereafter, settling at 0.65 on March 31, 2025, and further at 0.73 on June 30, 2025. Although these later ratios denote a reduced liquidity margin compared to the peak levels of late 2023, they still indicate that cash holdings are roughly equal to or slightly exceeding current liabilities.
In summary, Tapestry Inc's cash ratio has experienced considerable volatility over the analyzed period. The notable peak in late 2023 suggests periods of substantial liquidity possibly linked to specific corporate actions or financial strategies. The earlier periods depict a more moderate liquidity position, fluctuating around 0.4 to 1.4, while the later periods indicate a return to a more balanced, albeit reduced, liquidity stance approaching 0.7. Overall, the patterns highlight dynamic liquidity management, with significant shifts likely influenced by broader operational or strategic developments.
Peer comparison
Jun 30, 2025