Tapestry Inc (TPR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,896,900 | 2,277,800 | 2,285,500 | 3,259,300 | 2,276,400 |
| Debt-to-capital ratio | 0.71 | 0.42 | 0.42 | 0.33 | 0.41 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,003,400K ÷ ($7,003,400K + $2,896,900K)
= 0.71
The debt-to-capital ratio for Tapestry Inc has been fluctuating over the past five years. In June 2020, the ratio was 0.41, indicating that the company had 41% of its capital funded by debt. Subsequently, the ratio increased to 0.33 in June 2021, suggesting a lower reliance on debt for capital funding. However, there was a significant jump in the ratio to 0.42 in June 2022 and remained at the same level in June 2023 before increasing further to 0.71 in June 2024.
The notable increase in the debt-to-capital ratio from 0.42 in June 2023 to 0.71 in June 2024 indicates a substantial rise in the proportion of debt used to finance the company's operations. This could signify increased borrowing or a decline in shareholder equity in relation to total capital. It is essential for stakeholders to closely monitor this trend as a higher debt-to-capital ratio may indicate heightened financial risk and potential challenges in meeting debt obligations.
Peer comparison
Jun 30, 2024