Tapestry Inc (TPR)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,142,000 | 726,100 | 789,800 | 2,007,700 | 1,426,300 |
| Short-term investments | US$ in thousands | 1,061,800 | 15,400 | 163,400 | 8,100 | 8,100 |
| Receivables | US$ in thousands | 228,200 | 211,500 | 252,300 | 200,200 | 193,300 |
| Total current liabilities | US$ in thousands | 1,711,600 | 1,286,500 | 1,468,800 | 1,425,800 | 1,742,100 |
| Quick ratio | 4.34 | 0.74 | 0.82 | 1.55 | 0.93 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,142,000K
+ $1,061,800K
+ $228,200K)
÷ $1,711,600K
= 4.34
The quick ratio of Tapestry Inc has exhibited fluctuations over the past five years, indicating varying levels of liquidity. As of June 30, 2024, the quick ratio stands at 4.34, reflecting a substantial increase compared to the previous years. This significant improvement suggests a strengthened ability to meet short-term obligations using only its most liquid assets.
In contrast, the quick ratio was considerably lower in the prior years, with the lowest point observed in June 30, 2023, at 0.74. This indicates a potential liquidity challenge during that period, as the company may have had difficulty covering immediate liabilities with its quick assets alone.
The quick ratio rebounded in the subsequent years, reaching 0.82 in June 30, 2022, and 1.55 in June 30, 2021. This uptrend suggests an enhanced liquidity position and better short-term financial health for the company during those periods. However, it dipped slightly to 0.93 by June 30, 2020, indicating a temporary decrease in liquidity compared to the preceding year.
Overall, the fluctuating trend in Tapestry Inc's quick ratio underscores the importance of closely monitoring liquidity levels to ensure the company's ability to meet short-term obligations efficiently. The current high quick ratio indicates a strong liquidity position as of June 30, 2024, signaling a potentially favorable financial standing for the company.
Peer comparison
Jun 30, 2024