Tapestry Inc (TPR)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 2.42 | 2.79 | 2.93 | 0.68 | 0.72 | 0.73 | 0.72 | 0.74 | 0.73 | 0.47 | 0.41 | 0.38 | 0.49 | 0.53 | 0.55 | 0.63 | 0.70 | 0.63 | 0.49 | 0.52 |
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 several quarters. The ratio increased significantly from around 0.41 in March 2022 to 2.93 in December 2023, indicating a substantial increase in debt relative to equity during this period. This could suggest that the company took on more debt compared to its equity levels.
However, in the following quarters, the ratio decreased gradually, reaching 0.47 in March 2022, indicating a significant decrease in the proportion of debt relative to equity. This trend continued with fluctuations but generally maintained a decreasing trajectory, with the ratio ranging between 0.47 and 0.72 from March 2022 to March 2024.
It is important to note that a higher debt-to-equity ratio can indicate higher financial risk and leverage, while a lower ratio may suggest a stronger equity position and lower risk. The decreasing trend observed in recent quarters may indicate a shift towards a more conservative capital structure or a focus on reducing financial leverage. However, the company should continue to monitor and manage its debt levels effectively to maintain a healthy balance between debt and equity.
Peer comparison
Jun 30, 2024