Tapestry Inc (TPR)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.29% | 70.78% | 69.57% | 71.04% | 65.29% |
| Operating profit margin | 17.09% | 17.60% | 17.59% | 16.85% | -11.10% |
| Pretax margin | 15.17% | 17.16% | 15.66% | 15.62% | -12.58% |
| Net profit margin | 12.23% | 14.05% | 12.81% | 14.52% | -13.14% |
Over the past five years, Tapestry Inc has shown improvements in its profitability ratios. The gross profit margin has generally increased from 65.29% in 2020 to 73.29% in 2024, indicating the company's ability to control its production costs and generate more revenue from its products.
The operating profit margin has fluctuated slightly but has largely remained stable, ranging from 16.85% in 2021 to 17.60% in 2023. This suggests that Tapestry has effectively managed its operating expenses to maintain a consistent level of profitability from its core business operations.
The pretax margin has shown some variability but has generally trended upwards, with the ratio increasing from 15.62% in 2021 to 15.17% in 2024. This indicates that Tapestry has been successful in controlling its interest expenses and other costs before taxes, ultimately leading to higher profitability at the pre-tax level.
The net profit margin has also shown improvement over the years, increasing from -13.14% in 2020 to 12.23% in 2024. This positive trend indicates that Tapestry has been able to effectively manage its taxes, interest payments, and other expenses to generate higher net income relative to its revenue.
Overall, Tapestry Inc's profitability ratios reflect a positive trajectory, with improvements in gross, operating, pre-tax, and net profit margins over the past five years, demonstrating the company's enhanced efficiency and effectiveness in managing its costs and generating profits.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.51% | 16.47% | 16.18% | 11.55% | -6.95% |
| Return on assets (ROA) | 6.09% | 13.15% | 11.79% | 9.95% | -8.23% |
| Return on total capital | 11.52% | 29.90% | 29.73% | 19.92% | -14.21% |
| Return on equity (ROE) | 28.17% | 41.09% | 37.47% | 25.59% | -28.65% |
Tapestry Inc's profitability ratios have shown varying trends over the last five years.
Starting with Operating return on assets (Operating ROA), the company's performance in generating operating income relative to its total assets has seen a declining trend over the period. In 2024, the Operating ROA stood at 8.51%, down from 16.47% in 2023 and 16.18% in 2022. This indicates a decrease in the efficiency with which the company is utilizing its assets to generate operating income.
Moving on to Return on assets (ROA), which measures the company's overall profitability relative to its total assets, a similar trend is observed with a gradual decline in the ratio over the years. However, the trend is less pronounced compared to Operating ROA, with the ratio declining from 13.15% in 2023 to 6.09% in 2024.
Return on total capital reflects the company's ability to generate returns from both equity and debt capital invested. Tapestry Inc's performance in this regard has also showcased a downward trend, with the ratio dropping from 29.90% in 2023 to 11.52% in 2024. This indicates a decrease in the overall return generated by the company on its total invested capital.
Lastly, Return on equity (ROE) measures the company's profitability from the perspective of its shareholders. Tapestry Inc has shown a decline in ROE over the years, with the ratio falling from 41.09% in 2023 to 28.17% in 2024. This suggests a decrease in the company's ability to generate profits for its shareholders from their equity investments.
Overall, the profitability ratios of Tapestry Inc have exhibited a downward trajectory, signaling potential challenges in efficiently utilizing assets and generating returns for both creditors and shareholders.