Tapestry Inc (TPR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,396,300 | 13,727,900 | 13,815,400 | 7,142,500 | 7,116,800 | 6,984,400 | 7,257,700 | 7,080,000 | 7,265,300 | 7,338,200 | 7,929,400 | 8,014,100 | 8,382,400 | 7,966,000 | 8,150,400 | 8,133,400 | 7,924,200 | 7,743,000 | 8,700,100 | 8,450,100 |
| 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 |
| Financial leverage ratio | 4.62 | 4.95 | 5.19 | 2.96 | 3.12 | 3.09 | 3.14 | 3.14 | 3.18 | 2.89 | 2.71 | 2.54 | 2.57 | 2.64 | 2.82 | 3.21 | 3.48 | 3.03 | 2.62 | 2.74 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,396,300K ÷ $2,896,900K
= 4.62
Tapestry Inc's financial leverage ratio has shown fluctuations over the past few quarters. The ratio peaked at 5.19 in December 2023, indicating a high level of financial leverage at that time. Subsequently, the ratio decreased to 2.96 in September 2023, signaling a reduction in leverage. However, the ratio has been generally above 3, indicating that the company relies significantly on debt to finance its operations.
It is worth noting that a high financial leverage ratio can amplify both returns and risks for the company. While debt can enhance profitability through leverage, it also exposes the company to potential financial distress, especially in times of economic downturns or interest rate hikes. Therefore, it is essential for Tapestry Inc to carefully manage its debt levels to ensure sustainable and stable financial performance in the long run.
Peer comparison
Jun 30, 2024