Tapestry Inc (TPR)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 816,000 | 936,000 | 856,300 | 834,200 | -652,100 |
| Total stockholders’ equity | US$ in thousands | 2,896,900 | 2,277,800 | 2,285,500 | 3,259,300 | 2,276,400 |
| ROE | 28.17% | 41.09% | 37.47% | 25.59% | -28.65% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $816,000K ÷ $2,896,900K
= 28.17%
Tapestry Inc's return on equity (ROE) has displayed fluctuations over the past five years. The ROE was 28.17% as of June 30, 2024, representing a decline from the previous year's 41.09%. Despite this decrease, the current ROE remains relatively strong, indicating that the company is generating a healthy return on the shareholders' equity.
Comparing the ROE of 2024 to the figures from the prior years, it is evident that Tapestry Inc has shown variability in its return on equity performance. The ROE was notably high in 2023 and 2022 at 41.09% and 37.47%, respectively, indicating efficient utilization of shareholder funds to generate profits. However, the ROE saw a dip in 2021 to 25.59%, although it remained positive.
The most significant fluctuation in ROE occurred in 2020 when it was negative at -28.65%, reflecting a period of financial challenges for the company. This negative ROE might have been influenced by various factors such as losses or a significant decrease in shareholder equity.
In conclusion, Tapestry Inc's ROE has exhibited varying trends over the past five years, with fluctuations reflecting changes in the company's profitability and the efficiency of utilizing shareholder equity. Further analysis and consideration of the company's financial performance and external factors are necessary to understand the underlying reasons for these fluctuations in ROE.
Peer comparison
Jun 30, 2024