Tapestry Inc (TPR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -550,800 | -99,700 | 695,600 | 709,000 |
| Long-term debt | US$ in thousands | 7,003,400 | 7,743,500 | 7,787,600 | 1,637,500 | 1,643,800 | 1,650,000 | 1,656,200 | 1,662,500 | 1,668,800 | 1,200,000 | 1,200,000 | 1,200,000 | 1,600,000 | 1,600,000 | 1,600,000 | 1,600,000 | 1,600,000 | 1,600,000 | 1,611,400 | 1,611,500 |
| Total stockholders’ equity | US$ in thousands | 2,896,900 | 2,775,100 | 2,659,800 | 2,415,700 | 2,277,800 | 2,263,400 | 2,313,200 | 2,255,400 | 2,285,500 | 2,535,000 | 2,927,400 | 3,150,000 | 3,259,300 | 3,015,000 | 2,890,700 | 2,530,100 | 2,276,400 | 2,553,100 | 3,322,400 | 3,086,900 |
| 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% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,140,100K ÷ ($7,003,400K + $2,896,900K)
= 11.52%
The return on total capital for Tapestry Inc has shown some volatility over the past few quarters. The ratio fluctuated between a low of -14.21% in March 2020 to a high of 31.78% in March 2022. In recent quarters, the return on total capital has been relatively stable, averaging around 11-12%.
The return on total capital measures the company's ability to generate profits from all of its capital, including debt and equity. A return on total capital above the company's cost of capital indicates that the company is generating value for its investors.
The significant drop in the return on total capital in the latter part of 2020 and early 2021 may indicate challenges or inefficiencies within the company. However, the subsequent recovery and improvement in the ratio suggest that management decisions or strategic initiatives have positively impacted the company's profitability and efficiency in capital allocation.
Overall, the return on total capital trend for Tapestry Inc indicates a mix of performance and challenges, highlighting the importance of closely monitoring the company's financial health and operational efficiency.
Peer comparison
Jun 30, 2024