Tapestry Inc (TPR)
Quick ratio
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,119,600 | 1,037,700 | 983,400 | 6,462,900 | 6,142,000 | 6,975,100 | 6,833,100 | 622,100 | 726,100 | 637,200 | 830,200 | 526,500 | 789,800 | 806,000 | 1,257,400 | 1,252,600 | 2,007,700 | 1,651,700 | 1,642,600 | 1,513,900 |
| Short-term investments | US$ in thousands | 19,600 | 19,300 | 19,600 | 842,300 | 1,061,800 | 442,900 | 629,200 | 16,700 | 15,400 | 14,600 | 16,000 | 30,600 | 163,400 | 267,000 | 390,300 | 402,600 | 8,100 | 7,500 | 9,200 | 8,500 |
| Receivables | US$ in thousands | 239,300 | 532,200 | 564,600 | 541,800 | 464,400 | 499,200 | 487,200 | 511,300 | 211,500 | 443,800 | 252,800 | 269,600 | 252,300 | 416,900 | 200,200 | 236,800 | 454,800 | 393,500 | 331,700 | 251,100 |
| Total current liabilities | US$ in thousands | 1,556,900 | 1,627,900 | 1,751,000 | 1,853,800 | 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 |
| Quick ratio | 0.89 | 0.98 | 0.90 | 4.23 | 4.48 | 5.80 | 5.49 | 0.96 | 0.74 | 0.96 | 0.82 | 0.63 | 0.82 | 0.86 | 1.00 | 1.15 | 1.73 | 1.59 | 1.29 | 0.97 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,119,600K
+ $19,600K
+ $239,300K)
÷ $1,556,900K
= 0.89
The analysis of Tapestry Inc.'s quick ratio over the specified periods reveals significant fluctuations that reflect the company's liquidity position at different points in time.
Between September 30, 2020, and June 30, 2021, the quick ratio exhibits a generally upward trend, rising from 0.97 to 1.73. This increase indicates an improving ability to meet short-term liabilities with readily available liquid assets, suggesting enhanced liquidity management or a reduction in current liabilities relative to quick assets during this period.
However, from September 30, 2021, onward, the ratio experiences a consistent decline, reaching a low of 0.63 by September 30, 2022. This downward trend suggests a deteriorating liquidity position, as the company’s liquid assets relative to its current liabilities decrease, potentially highlighting increased short-term obligations or decreased liquid asset reserves.
The ratios between December 31, 2022, and September 30, 2023, fluctuate modestly around the 0.74 to 0.96 range, indicating a relatively stable but somewhat constrained liquidity position during this period, with some periods potentially signaling tight liquidity.
A notable change occurs starting in December 2023, when the quick ratio sharply escalates to 5.49, peaking at 5.80 by March 31, 2024. This spike suggests a substantial improvement in liquidity, possibly due to significant liquid asset accumulation, reduction in current liabilities, or asset reclassification.
Subsequently, the ratio declines again, reaching 0.90 by December 31, 2024, and stabilizes around the 0.89 to 0.98 range through June 30, 2025. These levels are close to the earlier ranges observed in the previous years, indicating a return to more typical liquidity levels.
Overall, the historical pattern of the quick ratio reveals periods of liquidity strength, notably in early 2021 and the early months of 2024, contrasted with periods of concern around mid-2022 to late 2023. The exceptionally high ratio in the most recent period (December 2023 to March 2024) suggests a potential temporary liquidity position rather than a consistently strong liquidity position over the entire timeline. This pattern underlines the importance of reviewing underlying factors such as asset composition, liabilities management, and strategic adjustments to fully understand the company's liquidity health.
Peer comparison
Jun 30, 2025