Tapestry Inc (TPR)

Quick ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Cash US$ in thousands 1,100,000 6,142,000 726,100 789,800 2,015,800
Short-term investments US$ in thousands 19,600 1,061,800 15,400 163,400 8,100
Receivables US$ in thousands 239,300 464,400 211,500 252,300 200,200
Total current liabilities US$ in thousands 1,556,900 1,711,600 1,286,500 1,468,800 1,425,800
Quick ratio 0.87 4.48 0.74 0.82 1.56

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,100,000K + $19,600K + $239,300K) ÷ $1,556,900K
= 0.87

The quick ratio of Tapestry Inc. has exhibited significant fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's quick ratio stood at 1.56, indicating a robust liquidity position wherein current liquid assets more than sufficiently cover its current liabilities. This suggests that Tapestry Inc. was well-positioned to meet its short-term financial obligations without relying on inventory sales.

However, by June 30, 2022, the quick ratio declined markedly to 0.82, reflecting a deterioration in liquidity. The ratio continued its downward trend in 2023, reaching 0.74, which indicates an even weaker liquidity position and a reduced buffer of liquid assets relative to current liabilities. This persistent decline over these years points to potential challenges in maintaining sufficient liquid assets to cover short-term liabilities.

In stark contrast, the quick ratio experienced a substantial increase in June 2024, surging to 4.48. This dramatic rise suggests a significant improvement in the company's liquidity, possibly due to an increase in liquid assets such as cash and receivables, or a reduction in current liabilities. This scenario implies that Tapestry Inc. was able to strengthen its short-term financial position considerably during this period.

Following this peak, the quick ratio decreased again to 0.87 by June 30, 2025. Despite being substantially lower than the peak, this ratio remains above 1.0, indicating that the company maintained a relatively healthy liquidity buffer at the end of the period, although it was not as strong as the earlier levels observed in 2021.

Overall, the analysis reveals a pattern of initial strong liquidity in 2021, followed by a period of weakening liquidity through 2022 and 2023, a significant liquidity boost in 2024, and a slight decline in 2025. These fluctuations highlight varying management and operational efficiencies, financial strategy adjustments, or macroeconomic factors influencing the company's short-term liquidity management over these years.


Peer comparison

Jun 30, 2025

Company name
Symbol
Quick ratio
Tapestry Inc
TPR
0.87
Capri Holdings Ltd
CPRI
0.00