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Capri Holdings Long-Term Debt & Capital Lease Obligation

: $2,653 Mil (As of Sep. 2021)
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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Capri Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $2,653 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Capri Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $2,653 Mil. Capri Holdings's Total Assets for the quarter that ended in Sep. 2021 was $7,493 Mil. Capri Holdings's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2021 was 0.35.

Capri Holdings's LT-Debt-to-Total-Asset declined from Sep. 2020 (0.43) to Sep. 2021 (0.35). It may suggest that Capri Holdings is progressively becoming less dependent on debt to grow their business.


Capri Holdings Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Capri Holdings's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Capri Holdings Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 675.00 1,936.00 3,770.00 2,876.00

Capri Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,353.00 2,967.00 2,876.00 2,800.00 2,653.00

Capri Holdings Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Capri Holdings  (NYSE:CPRI) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Capri Holdings's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2021 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2021 )=Long-Term Debt & Capital Lease Obligation (Q: Sep. 2021 )/Total Assets (Q: Sep. 2021 )
=2653/7493
=0.35

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Capri Holdings Long-Term Debt & Capital Lease Obligation Related Terms

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Capri Holdings Business Description

Capri Holdings logo
Traded in Other Exchanges
Address
33 Kingsway, London, GBR, WC2B 6UF
Michael Kors, Versace, and Jimmy Choo are the brands that comprise Capri Holdings. Capri markets, distributes, and retails upscale accessories and apparel. Michael Kors, Capri's largest and original brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, third-party retailers, and e-commerce. Milan-based Versace (acquired in 2018) is known for its ready-to-wear luxury fashion. Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since he was part of a group that acquired Michael Kors in 2003.
Executives
Purefoy Daniel officer: SVP, Global Ops 33 KINGSWAY LONDON X0 WC2B 6UF
Korologos Ann Mclaughlin director PO BOX 3599 BATTLECREEK MI 49016-3599
Benedetto M William director 11 WEST 42ND STREET 21ST FLOOR NEW YORK NY 10036
Reitman Stephen F director 11 WEST 42ND STREET 21ST FLOOR NEW YORK NY 10036
Gibbons Judy director C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET NEW YORK NY 10036
Tomlin Jean director C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET NEW YORK NY 10036
Thompson Jane A. director C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET NEW YORK NY 10036
Freestone Robin Anthony David director 33 KINGSWAY LONDON X0 WC2B 6UF
Edwards Thomas Jr. officer: EVP, CFO & COO 6820 LBJ FREEWAY DALLAS TX 75240
Idol John D director, officer: Chairman & CEO 650 MADISON AVE NEW YORK NY 10022
Mcdonough Krista A officer: SVP, GC & Chf Sustain Off 33 KINGSWAY LONDON X0 WC2B 6UF
Robinson Cathy Marie officer: SVP, Chf Ops & Trans Off C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET NEW YORK NY 10036
Meyran Pascale officer: SVP, Chief HR Officer 11 WEST 42ND STREET NEW YORK NY 10036
Kors Michael David director, officer: Hon Chair & Chief Creative Off C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET, ATTN. LEE SPORN NEW YORK NY 10036
Parsons Joseph B. officer: EVP, CFO, COO & Treasurer C/O MICHAEL KORS (USA), INC. 11 WEST 42ND STREET NEW YORK NY 10036

Capri Holdings Headlines

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