Tapestry Inc (TPR)
Debt-to-equity 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-equity ratio | 2.42 | 0.72 | 0.73 | 0.49 | 0.70 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,003,400K ÷ $2,896,900K
= 2.42
The debt-to-equity ratio of Tapestry Inc has shown fluctuations over the past five years. As of June 30, 2024, the ratio stands at 2.42, indicating a significant increase compared to the previous year. This increase suggests that the company relies more on debt financing relative to equity to fund its operations and growth.
In the preceding years, the debt-to-equity ratio ranged from 0.49 to 0.73, showing a relatively stable trend until the recent spike in 2024. A higher debt-to-equity ratio may indicate higher financial risk, as the company has a larger proportion of debt in its capital structure, potentially leading to increased interest payments and financial leverage.
It is essential for investors and stakeholders to monitor Tapestry Inc's debt levels and evaluate the company's ability to manage its debt obligations effectively, especially in light of the recent increase in the debt-to-equity ratio. Additionally, further analysis of the company's profitability, cash flow, and overall financial health is recommended to gain a more comprehensive understanding of its financial position.
Peer comparison
Jun 30, 2024