Tapestry Inc (TPR)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,140,100 | 1,172,400 | 1,175,800 | 968,000 | -550,800 |
| Total assets | US$ in thousands | 13,396,300 | 7,116,800 | 7,265,300 | 8,382,400 | 7,924,200 |
| Operating ROA | 8.51% | 16.47% | 16.18% | 11.55% | -6.95% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,140,100K ÷ $13,396,300K
= 8.51%
The operating return on assets (operating ROA) for Tapestry Inc has shown some variability over the past five years. In 2024, the operating ROA stands at 8.51%, representing a decrease from the previous year. This could indicate a lower operating efficiency in generating profits from its assets compared to the prior period.
The peak performance in the last five years was observed in 2023 with an operating ROA of 16.47%, indicating a strong ability to generate earnings from its assets. This was followed by a slightly lower but still robust performance in 2022 at 16.18%.
In 2021, the operating ROA was 11.55%, which was a notable decrease from the prior year, but still demonstrated relatively efficient asset utilization to generate operating income.
A significant decline was observed in 2020 with a negative operating ROA of -6.95%. This indicates that in 2020, Tapestry Inc's operating income was negative compared to its assets, which may suggest operational challenges or inefficiencies during that period.
Overall, the trend in operating ROA for Tapestry Inc over the past five years highlights fluctuations in its ability to generate operating income relative to its asset base. It is important for the company to maintain a stable and positive operating ROA to ensure efficient use of assets and sustainable profitability.
Peer comparison
Jun 30, 2024