Tapestry Inc (TPR)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,003,400 | 1,643,800 | 1,668,800 | 1,600,000 | 1,600,000 |
| Total assets | US$ in thousands | 13,396,300 | 7,116,800 | 7,265,300 | 8,382,400 | 7,924,200 |
| Debt-to-assets ratio | 0.52 | 0.23 | 0.23 | 0.19 | 0.20 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,003,400K ÷ $13,396,300K
= 0.52
The debt-to-assets ratio for Tapestry Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending June 30, 2024, the ratio stands at 0.52, indicating that more than half of the company's assets are financed through debt. This represents a significant increase compared to the prior year, where the ratio was at 0.23.
Looking back over the past five years, the ratio has generally been within the range of 0.19 to 0.23, except for the latest year where there was a notable jump. This suggests that Tapestry Inc has increased its reliance on debt to fund its assets in the most recent period.
A higher debt-to-assets ratio can indicate a higher level of financial risk for the company, as it implies a greater proportion of assets are funded through debt, which comes with interest payment obligations and repayment requirements. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt levels effectively.
Peer comparison
Jun 30, 2024