Tapestry Inc (TPR)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,140,100 | 1,172,400 | 1,175,800 | 968,000 | -550,800 |
| Long-term debt | US$ in thousands | 7,003,400 | 1,643,800 | 1,668,800 | 1,600,000 | 1,600,000 |
| Total stockholders’ equity | US$ in thousands | 2,896,900 | 2,277,800 | 2,285,500 | 3,259,300 | 2,276,400 |
| Return on total capital | 11.52% | 29.90% | 29.73% | 19.92% | -14.21% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,140,100K ÷ ($7,003,400K + $2,896,900K)
= 11.52%
Tapestry Inc's return on total capital has displayed variability over the past five years. In the most recent fiscal year ending June 30, 2024, the return on total capital stood at 11.52%, reflecting a decrease from the previous year's robust performance of 29.90%. The high return in 2023 was also comparable to the strong performance in 2022, where the return on total capital was 29.73%.
While the company demonstrated positive returns in 2023 and 2022, indicating effective utilization of its capital, the return dipped to 19.92% in 2021. Notably, Tapestry Inc experienced a significant decline in 2020 with a negative return on total capital of -14.21%, which could be attributed to challenges faced by the company in that particular period.
Overall, Tapestry Inc's return on total capital has shown fluctuations, with periods of strong performance and some challenges. Monitoring this metric closely will be imperative for assessing the company's efficiency in generating returns from its overall capital base.
Peer comparison
Jun 30, 2024