Tapestry (Tapestry) Interest Coverage

: 9.10 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Tapestry's Operating Income for the three months ended in Dec. 2023 was $448 Mil. Tapestry's Interest Expense for the three months ended in Dec. 2023 was $-49 Mil. Tapestry's interest coverage for the quarter that ended in Dec. 2023 was 9.10. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Tapestry's Interest Coverage or its related term are showing as below:

TPR' s Interest Coverage Range Over the Past 10 Years
Min: 9.08 Med: 24.29 Max: No Debt
Current: 16.05

TPR's Interest Coverage is ranked better than
66.31% of 751 companies
in the Retail - Cyclical industry
Industry Median: 7.81 vs TPR: 16.05

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Tapestry Interest Coverage Historical Data

The historical data trend for Tapestry's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Tapestry Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

17.11

13.56

20.03

42.48

Tapestry Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																52.94	37.10	44.13	19.04	9.10

Competitive Comparison

For the Luxury Goods subindustry, Tapestry's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tapestry Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Tapestry's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tapestry's Interest Coverage falls into.

Tapestry Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Tapestry's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Tapestry's Interest Expense was $-28 Mil. Its Operating Income was $1,172 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,970 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	1172.4	/	-27.6
	=	42.48

Tapestry's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Tapestry's Interest Expense was $-49 Mil. Its Operating Income was $448 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,009 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	447.6	/	-49.2
	=	9.10

The higher the ratio, the stronger the company's Financial Strength is.

Tapestry (NYSE:TPR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Tapestry Interest Coverage Related Terms

Thank you for viewing the detailed overview of Tapestry's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Tapestry (Tapestry) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Tapestry Inc (NYSE:TPR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TPR:Mexico COY:Germany COY:Germany

Address

10 Hudson Yards, New York, NY, USA, 10001

Website

https://www.tapestry.com

Coach, Kate Spade, and Stuart Weitzman are Tapestry's fashion and accessory brands. The firm's products are sold through about 1,400 company-operated stores, wholesale channels, and e-commerce in North America (66% of fiscal 2023 sales), Europe, Asia (29% of fiscal 2023 sales), and elsewhere. Coach (75% of fiscal 2023 sales) is best known for affordable luxury leather products. Kate Spade (21% of fiscal 2023 sales) is known for colorful patterns and graphics. Women's handbags and accessories produced 69% of Tapestry's sales in fiscal 2023. Stuart Weitzman (4% of sales) generates nearly all its revenue from women's footwear. In August 2023, Tapestry agreed to acquire rival Capri and its three brands, Michael Kors, Versace, and Jimmy Choo.

Executives

Denise Kulikowsky	officer: Chief People Officer	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Lau Alan Ka Ming	director	10 HUDSON YARDS, NEW YORK NY 10001
Manesh Dadlani	officer: VP, Controller and PAO	10 HUDSON YARDS, NEW YORK NY 10001
Thomas A. Glaser	officer: Chief Operations Officer	10 HUDSON YARDS, 19TH FLOOR, NEW YORK NY 10001
Sarah Dunn	officer: SVP, Human Resources	516 WEST 34TH STREET, NEW YORK NY 10001
Todd Kahn	officer: SVP and General Counsel	516 WEST 34TH STREET, NEW YORK NY 10001
Johanna W. Faber	director	10 HUDSON YARDS, NEW YORK NY 10001
David E Howard	officer: SVP, GC & Secretary	10 HUDSON YARDS, NEW YORK NY 10001
Scott A. Roe	officer: CFO and Head of Strategy	105 CORPORATE CENTER BLVD., GREENSBORO NC 27408
Annabelle Yu Long	director	516 WEST 34TH STREET, NEW YORK NY 10001
Ivan Menezes	director	C/O TAPESTRY, INC., 10 HUDSON YARDS, NEW YORK NY 10001
Thomas Greco	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Pamela Lifford	director	10 HUDSON YARDS, NEW YORK NY 10001
John P Bilbrey	director
Elizabeth Fraser	officer: CEO & Brand Pres. Kate Spade	10 HUDSON YARDS, NEW YORK NY 10001