Tapestry Inc (TPR)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 183,200 | 816,000 | 936,000 | 856,300 | 834,200 |
| Total assets | US$ in thousands | 6,580,500 | 13,396,300 | 7,116,800 | 7,265,300 | 8,382,400 |
| ROA | 2.78% | 6.09% | 13.15% | 11.79% | 9.95% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $183,200K ÷ $6,580,500K
= 2.78%
The return on assets (ROA) of Tapestry Inc. demonstrates notable fluctuations over the specified periods. As of June 30, 2021, the ROA was reported at 9.95%, indicating the company was generating nearly 10 cents of profit for every dollar of assets held. By June 30, 2022, the ROA increased significantly to 11.79%, reflecting improved efficiency in utilizing assets to generate earnings. This upward trend continued into June 30, 2023, with the ROA reaching 13.15%, the highest within the observed timeframe, suggesting a period of optimal asset utilization and operational profitability.
However, post-2023, there is a marked decline in ROA. By June 30, 2024, the ratio sharply decreased to 6.09%, signaling a reduction in profitability relative to asset base. This downturn intensified further as of June 30, 2025, where the ROA fell to 2.78%, indicating substantially diminished efficiency in generating profits from the company's assets.
Overall, the pattern exhibits a peak in ROA during 2023, followed by a significant decrease in subsequent years. This trend may reflect changes in asset utilization efficiency, profitability pressures, or strategic shifts within the company. The decline in ROA, especially towards 2025, warrants further analysis to understand underlying causes such as asset base expansion, operational challenges, or market conditions affecting profitability.
Peer comparison
Jun 30, 2025