Tapestry Inc (TPR)

Solvency ratios

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
Debt-to-assets ratio 0.52 0.56 0.56 0.23 0.23 0.24 0.23 0.23 0.23 0.16 0.15 0.15 0.19 0.20 0.20 0.20 0.20 0.21 0.19 0.19
Debt-to-capital ratio 0.71 0.74 0.75 0.40 0.42 0.42 0.42 0.42 0.42 0.32 0.29 0.28 0.33 0.35 0.36 0.39 0.41 0.39 0.33 0.34
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
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

Tapestry Inc's solvency ratios show fluctuating levels of leverage and debt management over the past few quarters. The debt-to-assets ratio has varied between 0.15 and 0.56, indicating that the company's total debt relative to its total assets has been moderately high at times.

The debt-to-capital ratio has experienced similar fluctuations, ranging from 0.28 to 0.75. This ratio reflects the proportion of the company's capital that is financed through debt, and the higher values suggest a relatively high level of debt in the company's capital structure.

The debt-to-equity ratio has also shown significant variability, ranging from 0.38 to 2.93. This ratio indicates the extent to which the company's operations are funded by debt relative to equity, with higher values suggesting a higher reliance on debt financing.

The financial leverage ratio, which measures the extent to which the company's operations are funded by creditors versus shareholders, has ranged from 2.54 to 5.19. The higher values indicate a higher level of financial risk due to increased leverage.

Overall, the varying levels of debt in Tapestry Inc's capital structure over the analyzed periods indicate a need for close monitoring of the company's solvency and financial risk management strategies.

Coverage ratios

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
Interest coverage 3.08 4.52 8.03 14.79 16.02 15.48 15.47 16.52 16.97 18.04 16.73 14.98 13.06 5.46 -4.80 -5.31 -7.64 -1.48 10.34 10.57

The interest coverage ratio for Tapestry Inc has exhibited some fluctuations over the past few years. The company's interest coverage ratio has generally been healthy, indicating its ability to comfortably cover its interest obligations with its operating income.

Looking at the trend, the interest coverage ratio peaked at 18.04 in Mar 31, 2022, reflecting a strong ability to meet interest payments with operating income. The ratio then gradually declined through the latter half of 2022 and into 2023, before experiencing a significant drop to -4.80 in Mar 31, 2021, and further to -5.31 in Dec 31, 2020. These negative ratios suggest that Tapestry Inc's operating income was insufficient to cover its interest expenses during these periods.

However, the company made a substantial recovery in its interest coverage ratio in the subsequent quarters, reaching 16.97 in Jun 30, 2022, and climbing to 16.02 by Jun 30, 2023. It continued to improve further, reaching 14.79 in Sep 30, 2023, and 8.03 in Dec 31, 2023, indicating a strengthening ability to cover interest payments.

Overall, Tapestry Inc has demonstrated an overall healthy interest coverage ratio in recent quarters, with some fluctuations. It is crucial for investors and stakeholders to monitor this ratio to ensure the company maintains its ability to meet its interest obligations comfortably.