Tapestry Inc (TPR)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 880,700 | 1,112,000 | 1,059,000 | 1,141,500 | 1,136,900 | 1,178,600 | 1,206,400 | 1,178,900 | 1,170,700 | 1,157,300 | 1,094,500 | 1,145,800 | 1,195,000 | 1,195,400 | 1,141,200 | 1,058,100 | 970,100 | 431,600 | -372,200 | -398,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,440,100 | 1,493,800 | 1,336,500 | 2,981,900 | 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 |
| Return on total capital | 61.16% | 74.44% | 79.24% | 38.28% | 39.25% | 42.47% | 45.36% | 48.80% | 51.40% | 51.13% | 47.32% | 50.80% | 52.29% | 47.16% | 38.98% | 33.59% | 29.76% | 14.32% | -12.88% | -15.74% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $880,700K ÷ ($—K + $1,440,100K)
= 61.16%
The analysis of Tapestry Inc.'s return on total capital (ROTC) reveals significant fluctuations over the specified periods. During the fiscal year ending September 30, 2020, the ROTC was notably negative at -15.74%, indicating that the company was experiencing difficulty generating returns on its total capital, likely due to operational challenges or economic conditions impacting profitability. The decline persisted into the December 31, 2020, period, with a slightly less negative figure of -12.88%.
In early 2021, the ROTC experienced a substantial turnaround, moving into positive territory with a reading of 14.32% at March 31, 2021. This positive shift continued through 2021 and into 2022, with the ROTC reaching 29.76% as of June 30, 2021, and further escalating to a peak of 52.29% on June 30, 2022. The sustained improvement indicates a period of strong operational performance and effective utilization of total capital resources.
From late 2022 through mid-2023, the ROTC remained relatively high, stabilizing around 48-51%, which suggests continued operational efficiency and profitability at a high level, though with slight fluctuations. Starting in late 2023, the ratio experienced some decline, with figures decreasing from 45.36% on December 31, 2023, to 39.25% by June 30, 2024, and further to 38.28% on September 30, 2024. This downward trend may reflect a normalization after a peak period or changing market conditions affecting profit generation.
Interestingly, the data shows a dramatic increase in the ROTC for the periods ending December 31, 2024, through June 30, 2025, where it rises to 79.24% and then decreases to 74.44% and 61.16%, respectively. These figures suggest a significant improvement in the company's ability to generate returns on its total capital, possibly due to strategic initiatives, operational efficiencies, or favorable market conditions during this timeframe.
Overall, Tapestry Inc. experienced a marked transformation from negative and modest positive returns in 2020 and early 2021 to sustained high levels of return on total capital through 2022 and into late 2023. The subsequent fluctuations reflect changes in operational performance and market dynamics, with recent data indicating a period of elevated profitability following earlier challenges.
Peer comparison
Jun 30, 2025