Tapestry Inc (TPR)
Profitability ratios
Return on sales
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 73.29% | 72.71% | 72.28% | 71.36% | 70.78% | 69.92% | 69.27% | 69.09% | 69.57% | 70.37% | 70.71% | 71.35% | 71.04% | 70.47% | 67.15% | 66.06% | 65.29% | 64.92% | 67.11% | 67.18% |
| Operating profit margin | 17.09% | 17.59% | 17.85% | 17.57% | 17.60% | 17.21% | 16.54% | 16.92% | 17.59% | 17.78% | 17.42% | 17.52% | 16.85% | 8.84% | -8.05% | -8.38% | -11.10% | -1.73% | 11.56% | 11.81% |
| Pretax margin | 15.17% | 16.09% | 16.82% | 17.18% | 17.16% | 16.57% | 15.67% | 15.00% | 15.66% | 15.89% | 15.43% | 16.33% | 15.62% | 7.31% | -9.60% | -9.75% | -12.58% | -2.86% | 10.56% | 10.80% |
| Net profit margin | 12.23% | 13.15% | 13.80% | 14.03% | 14.05% | 13.51% | 12.69% | 12.29% | 12.81% | 12.99% | 12.84% | 13.70% | 14.52% | 7.03% | -9.22% | -9.22% | -13.14% | -3.64% | 9.72% | 9.01% |
Tapestry Inc's profitability ratios have shown fluctuations over the analyzed periods. The gross profit margin has generally been increasing, indicating the company's ability to generate profit from its core operations. This suggests effective cost management and pricing strategies.
The operating profit margin has been quite stable, staying within a narrow range. This shows consistent operational efficiency in managing expenses relative to revenue. However, there was a significant decline in the operating profit margin in the first quarter of 2021, potentially indicating operational challenges during that period.
The pretax margin demonstrates the company's ability to generate profit before accounting for taxes and other non-operating expenses. Although there have been fluctuations, the trend has generally been positive, with an overall increasing tendency.
The net profit margin reflects Tapestry Inc's bottom-line profitability after all expenses have been considered. The margin has varied over the periods, with some fluctuations. However, the overall trend has shown improvement, with higher net profit margins in recent periods compared to previous years.
In conclusion, Tapestry Inc has shown overall positive trends in its profitability ratios, reflecting effective management of operational and financial performance. It is important for the company to monitor these ratios consistently to ensure sustained profitability and identify areas for improvement.
Return on investment
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | -6.95% | -1.29% | 8.00% | 8.39% |
| Return on assets (ROA) | 6.09% | 6.42% | 6.72% | 13.10% | 13.15% | 12.90% | 11.53% | 11.65% | 11.79% | 11.82% | 10.55% | 10.35% | 9.95% | 4.28% | -5.25% | -5.41% | -8.23% | -2.70% | 6.73% | 6.40% |
| Return on total capital | 11.52% | 11.21% | 11.49% | 28.90% | 29.90% | 29.32% | 27.47% | 28.97% | 29.73% | 31.78% | 27.48% | 24.39% | 19.92% | 9.28% | -8.33% | -9.69% | -14.21% | -2.40% | 14.10% | 15.09% |
| Return on equity (ROE) | 28.17% | 31.74% | 34.89% | 38.73% | 41.09% | 39.79% | 36.17% | 36.57% | 37.47% | 34.21% | 28.57% | 26.33% | 25.59% | 11.30% | -14.81% | -17.41% | -28.65% | -8.20% | 17.61% | 17.53% |
Tapestry Inc's profitability ratios show varying trends over the past several quarters.
1. Operating return on assets (Operating ROA) has been relatively stable, with fluctuations around the 15% mark. However, there was a significant spike in Sep 2023 and a subsequent decline. This ratio indicates the effectiveness of the company in generating operating income from its assets.
2. Return on assets (ROA) has also followed a similar pattern to Operating ROA, although at a slightly lower level. This ratio reflects Tapestry's overall efficiency in utilizing its assets to generate profits.
3. Return on total capital has shown more volatility, with significant fluctuations, reaching a peak in Sep 2022 and then dropping. This ratio considers the company's profitability in relation to the total capital employed, including debt and equity.
4. Return on equity (ROE) has exhibited an overall decreasing trend, with fluctuations. ROE signifies the profitability of the company for its equity shareholders and is affected by leverage. Tapestry's ROE was at its highest in Sep 2023 but has since declined.
In summary, although Tapestry Inc has maintained stable profitability ratios in some areas, there are fluctuations and declines in others, indicating the need for careful monitoring and strategic decision-making to sustain and improve overall profitability.