Tapestry Inc (TPR)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 415,000 | 1,140,100 | 1,172,400 | 1,175,800 | 968,000 |
| Total assets | US$ in thousands | 6,580,500 | 13,396,300 | 7,116,800 | 7,265,300 | 8,382,400 |
| Operating ROA | 6.31% | 8.51% | 16.47% | 16.18% | 11.55% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $415,000K ÷ $6,580,500K
= 6.31%
The operating return on assets (ROA) for Tapestry Inc. demonstrates notable fluctuations over the period from 2021 to 2025. As of June 30, 2021, the operating ROA stood at 11.55%, indicating a moderate level of operational efficiency in generating profit from the company's assets. By June 30, 2022, this figure increased significantly to 16.18%, reflecting improved operational performance and potentially better asset utilization or higher operating margins. The positive trend continued into 2023, with the operating ROA reaching 16.47%, marking a peak within the observed timeframe and suggesting sustained operational strength.
However, a notable decline occurred in 2024, where the operating ROA dropped sharply to 8.51%, representing a decrease of nearly half compared to the previous year’s high. This decline may be indicative of challenges in operational efficiency, increased expenses, or strategic shifts impacting overall profitability relative to assets. The downward trend persisted into 2025, with the operating ROA further decreasing to 6.31%, which could signal ongoing operational difficulties or changes in asset base utilization.
Overall, the trend from 2021 to 2023 reflects periods of robust operational performance, while the subsequent decline in 2024 and 2025 suggests a deterioration in the company’s ability to generate operating profit efficiently from its assets. This shift warrants further investigation into underlying operational factors, cost management, and strategic adjustments during these years.
Peer comparison
Jun 30, 2025