Tapestry Inc (TPR)

Liquidity ratios

	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
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
Quick ratio	4.34	5.63	5.32	0.76	0.74	0.57	0.82	0.43	0.82	0.62	0.89	1.01	1.41	1.29	1.08	0.84	0.82	0.79	0.93	0.65
Cash ratio	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	0.82	0.79	0.93	0.65

The liquidity ratios of Tapestry Inc have shown fluctuations over the past several quarters.

1. Current Ratio: The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively healthy in recent quarters, indicating that Tapestry has had a strong liquidity position overall.

2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a positive trend over the periods, suggesting that Tapestry has a solid ability to meet its short-term obligations without relying on inventory sales.

3. Cash Ratio: The cash ratio, which focuses solely on the most liquid assets, has exhibited consistent improvement, indicating that Tapestry has been holding an increasing proportion of its assets in cash, which provides a strong cushion for short-term liquidity needs.

Overall, the liquidity ratios of Tapestry Inc reflect a generally healthy liquidity position, with improvements seen across various measures like the current ratio, quick ratio, and cash ratio over the past few quarters. This indicates that the company is well-positioned to meet its short-term financial obligations and withstand any unexpected challenges that may arise in the near future.

Additional liquidity measure

		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
Cash conversion cycle	days	88.82	105.10	84.18	120.77	105.86	109.80	111.11	110.69	98.74	80.12	53.95	85.07	63.51	74.17	58.74	116.03	128.46	117.92	91.43	115.93

The cash conversion cycle of Tapestry Inc fluctuated over the past few quarters, indicating varying efficiency in managing its working capital.

In the most recent quarter, the cash conversion cycle was 88.82 days, suggesting that the company takes approximately 88.82 days to convert its investments in inventory and accounts receivable back into cash. This is an improvement from the previous quarter's cycle of 105.10 days, indicating that Tapestry has become more efficient in managing its cash flow.

Looking back over the last few quarters, the cash conversion cycle has shown significant variation, ranging from a low of 53.95 days to a high of 128.46 days. This variability may be attributed to fluctuations in sales, inventory management, and collection of accounts receivable.

It is noteworthy that the company's cash conversion cycle exceeded 100 days in some quarters, indicating that Tapestry may have experienced challenges in converting its assets back to cash efficiently during those periods. This could potentially lead to liquidity issues if not managed effectively.

Overall, Tapestry Inc should continue to monitor and improve its cash conversion cycle to ensure optimal utilization of its working capital and strengthen its financial position.