Tapestry Inc (TPR)
Financial leverage ratio
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,580,500 | 7,306,200 | 7,251,900 | 13,728,900 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,440,100 | 1,493,800 | 1,336,500 | 2,981,900 | 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 |
| Financial leverage ratio | 4.57 | 4.89 | 5.43 | 4.60 | 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 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,580,500K ÷ $1,440,100K
= 4.57
The financial leverage ratio of Tapestry Inc exhibits notable fluctuations over the analyzed period. Initially, the ratio stood at 3.21 as of September 30, 2020, and experienced a declining trend through the end of 2021, reaching a low of 2.54 in September 2021. This decrease suggests a reduction in leverage, possibly indicating a strategic shift towards deleveraging or improved equity capital relative to debt.
Subsequently, the ratio increased steadily beginning in late 2021. It rose to 2.89 by March 2022, then to 3.18 by June 2022, and slightly declined to 3.14 by September 2022 and December 2022, maintaining a relatively stable leverage level through the first half of 2023. However, a significant escalation occurred subsequently, with the ratio reaching 5.19 at the end of 2023, indicating a substantial increase in leverage during this period.
In early 2024, the ratio declined somewhat to 4.95 in March but again decreased marginally to 4.62 in June and further to 4.60 by September 2024. Despite this slight downward trend, the ratio remained elevated compared to earlier years. By the end of 2024, the ratio further increased to 5.43, suggesting heightened leverage levels. The first half of 2025 shows a moderate reduction, with the ratio at 4.89 in March and 4.57 in June.
Overall, the pattern indicates periods of both de-leveraging and increased leverage, with notable peaks around the end of 2023 and early 2024. The substantial rise in leverage during this latter period may reflect increased borrowing for growth initiatives, acquisitions, or other financial strategies, while the earlier declines suggest temporary efforts to strengthen the equity base or manage debt levels. The observed fluctuations highlight the company's dynamic approach to managing its financial leverage over the analyzed timeframe.
Peer comparison
Jun 30, 2025