Tapestry Inc (TPR)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,580,500 | 13,396,300 | 7,116,800 | 7,265,300 | 8,382,400 |
| Total stockholders’ equity | US$ in thousands | 857,800 | 2,896,900 | 2,277,800 | 2,285,500 | 3,259,300 |
| Financial leverage ratio | 7.67 | 4.62 | 3.12 | 3.18 | 2.57 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,580,500K ÷ $857,800K
= 7.67
The financial leverage ratio of Tapestry Inc has demonstrated a notable upward trend over the analyzed period from June 30, 2021, through June 30, 2025. Specifically, the ratio increased from 2.57 in 2021 to 3.18 in 2022, indicating a moderate rise in the company's reliance on debt relative to equity. In 2023, the ratio saw a slight decline to 3.12, suggesting a marginal reduction in leverage or a change in the composition of liabilities and equity. The upward trajectory resumed in 2024, with the ratio climbing significantly to 4.62, reflecting increased leverage, potentially due to augmented borrowings or a decrease in equity. This trend continued into 2025, where the ratio surged dramatically to 7.67, implying a substantial escalation in financial leverage.
Overall, the increasing pattern of the financial leverage ratio indicates that Tapestry Inc has progressively intensified its use of debt financing over the period. Such a shift suggests a strategic emphasis on leverage to fund growth initiatives, acquisitions, or share repurchases. The notable rise toward 2025 warrants consideration of the company's risk profile, as higher leverage can amplify both returns and financial risk. The company’s leverage dynamics demonstrate a significant move towards greater financial risk exposure, necessitating careful monitoring of its debt management and ability to sustain higher leverage levels in the future.
Peer comparison
Jun 30, 2025