Tapestry Inc (TPR)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 415,000 | 1,233,500 | 1,184,100 | 1,138,900 | 1,140,100 | 1,178,700 | 1,200,700 | 1,171,300 | 1,172,400 | 1,147,300 | 1,090,500 | 1,135,100 | 1,175,800 | 1,187,000 | 1,134,200 | 1,060,800 | 968,000 | 428,300 | -373,900 | -400,200 |
| Total assets | US$ in thousands | 6,580,500 | 7,306,200 | 7,251,900 | 13,728,900 | 13,396,300 | 13,727,900 | 13,815,400 | 7,142,500 | 7,116,800 | 6,984,400 | 7,257,700 | 7,080,000 | 7,265,300 | 7,338,200 | 7,929,400 | 8,014,100 | 8,382,400 | 7,966,000 | 8,150,400 | 8,133,400 |
| Operating ROA | 6.31% | 16.88% | 16.33% | 8.30% | 8.51% | 8.59% | 8.69% | 16.40% | 16.47% | 16.43% | 15.03% | 16.03% | 16.18% | 16.18% | 14.30% | 13.24% | 11.55% | 5.38% | -4.59% | -4.92% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $415,000K ÷ $6,580,500K
= 6.31%
The operating return on assets (ROA) for Tapestry Inc exhibits considerable variation over the analyzed period. During the fiscal year ending September 30, 2020, the company experienced negative operating ROA figures, with a low of -4.92%, reflecting operating inefficiencies or challenges in generating operating income relative to total assets during that period. This negative trend continued into December 2020, with a slight improvement to -4.59%, but still indicating operating underperformance.
Starting in the fiscal quarter ending March 31, 2021, a marked turnaround occurs as the operating ROA turns positive, reaching 5.38%. This upward trajectory accelerates through the remainder of 2021, culminating in robust operating ROA figures of 13.24% at September 30, 2021, and increasing further to 14.30% by December 31, 2021. The trend continues into 2022, with the operating ROA reaching 16.18% in March and June 2022, where it appears to stabilize at that level through September 2022 with a slight decrease to 16.03%.
In the subsequent period, there is a gradual decline: operating ROA decreases to 15.03% by December 2022 and slightly increases back to 16.43% in March 2023, maintaining around 16.47% in June 2023, and slightly dipping to 16.40% in September 2023. These figures suggest a period of relative stability and sustained operational efficiency.
However, a notable decline is observed at the end of the period, with the operating ROA dropping sharply to 8.69% in December 2023, and further to approximately 8.59% and 8.51% in the subsequent quarters. By September 2024, the metric remains low at 8.30%. This decline coincides with an anomalous increase to 16.33% in December 2024, followed by further recoveries to 16.88% in March 2025. Nonetheless, by June 2025, the operating ROA falls back to 6.31%, indicating significant volatility in operational efficiency measures.
Overall, Tapestry Inc’s operating ROA experienced a substantial recovery from negative values in 2020 to peak levels exceeding 16% in 2022 and early 2023, representing improved operational performance and asset utilization. The subsequent downward trend from late 2023 into 2024 suggests challenges in maintaining these efficiencies, with the ratio displaying notable fluctuations. This volatility underscores periods of operational stress and recovery phases affecting the company's ability to generate operating income relative to its total assets consistently.
Peer comparison
Jun 30, 2025