Tapestry Inc (TPR)

Current ratio

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Total current assets US$ in thousands 8,803,700 8,997,000 9,042,500 2,409,000 2,363,500 2,218,900 2,498,600 2,387,400 2,573,800 2,558,600 3,058,500 3,086,200 3,375,300 2,896,600 2,877,200 2,845,500 2,553,100 2,131,900 2,511,400 2,203,900
Total current liabilities US$ in thousands 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 1,742,100 1,138,900 1,252,300 1,212,000
Current ratio 5.14 6.59 6.25 2.02 1.84 1.94 1.87 1.82 1.75 1.48 1.66 1.87 2.37 2.24 1.88 1.56 1.47 1.87 2.01 1.82

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $8,803,700K ÷ $1,711,600K
= 5.14

The current ratio of Tapestry Inc has displayed fluctuations over the past few quarters.

The ratio was relatively stable and strong in the first half of 2024, ranging from 5.14 to 6.59, indicating that the company had more than enough current assets to cover its current liabilities during this period. This suggests a strong liquidity position, which is generally favorable for meeting short-term obligations.

However, the current ratio decreased significantly in the third quarter of 2023 to 2.02, and even further in the second quarter of 2023 to 1.84, indicating a potential liquidity strain during that period. This could suggest either an increase in current liabilities, a decrease in current assets, or both, which may raise concerns about the company's ability to meet its short-term obligations.

The ratio improved in the following quarters of 2023, but remained below 2, indicating continued but improving liquidity challenges. However, by the end of 2023 and into early 2024, the current ratio improved significantly, reaching levels above 6, which signifies a robust liquidity position compared to previous periods.

Overall, while the current ratio of Tapestry Inc has shown fluctuations, the recent trend of improvement in liquidity position is a positive sign for the company in terms of its ability to cover short-term obligations with its current assets.


Peer comparison

Jun 30, 2024

Company name
Symbol
Current ratio
Tapestry Inc
TPR
5.14
Capri Holdings Ltd
CPRI
0.95