Tapestry Inc (TPR)
Current ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,905,600 | 8,803,700 | 2,363,500 | 2,573,800 | 3,375,300 |
| Total current liabilities | US$ in thousands | 1,556,900 | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 |
| Current ratio | 1.87 | 5.14 | 1.84 | 1.75 | 2.37 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,905,600K ÷ $1,556,900K
= 1.87
The analysis of Tapestry Inc's current ratio over the specified periods reveals varying liquidity positions. As of June 30, 2021, the current ratio stood at 2.37, indicating a relatively strong liquidity position with the company possessing more than twice its current liabilities in current assets. This ratio subsequently declined to 1.75 by June 30, 2022, reflecting a decrease in liquidity, although it remained above the generally accepted threshold of 1.0, suggesting that the company still maintained sufficient short-term assets to cover its short-term obligations.
By June 30, 2023, the current ratio experienced a slight increase to 1.84, indicating modest improvement in liquidity, potentially due to operational changes or restructuring of current assets and liabilities. Notably, the most significant shift occurred by June 30, 2024, when the current ratio surged to 5.14. This dramatic increase suggests a substantial accumulation of current assets relative to current liabilities, which could be indicative of improved cash reserves, inventories, or receivables, or possibly a reduction in current liabilities.
However, by June 30, 2025, the current ratio decreased markedly to 1.87. Although it declined from its peak in 2024, it still remained above 1.0, signifying that the company continues to maintain a liquidity buffer capable of meeting short-term obligations, albeit with less surplus than in 2024.
Overall, the trend demonstrates periods of fluctuation in Tapestry Inc's liquidity, with a notable peak in 2024. The decline from this peak suggests a normalization of liquidity position, but the ratios across years consistently indicate that the company generally maintains sufficient short-term assets to cover its current liabilities.
Peer comparison
Jun 30, 2025