VF Corporation (VFC)

Short-term

Turnover ratios

VF Corporation's inventory turnover ratio has seen a declining trend from 4.12 in 2021 to 2.72 in 2025. This indicates that the company is taking longer to sell its inventory over the years, which could potentially lead to excess inventory or obsolete stock.

On the other hand, the receivables turnover ratio has fluctuated between 7.12 and 8.19 during the same period. This suggests that VF Corporation has been efficient in collecting payments from its customers, with a slight increase in 2024 compared to 2021.

The payables turnover ratio has also shown a decreasing trend from 9.44 in 2021 to 5.60 in 2025. This indicates that the company is taking longer to pay its suppliers, which may impact its relationships with vendors or could be a strategic decision to manage cash flow.

Working capital turnover has shown significant fluctuations, with a notable increase from 3.59 in 2021 to 13.58 in 2024 before decreasing to 8.73 in 2025. This suggests that VF Corporation has been effectively utilizing its working capital to generate sales revenue, with a peak in efficiency in 2024.

Overall, while the inventory turnover and payables turnover ratios are showing trends that may require attention, the receivables turnover and working capital turnover ratios indicate positive aspects of VF Corporation's operational efficiency and management of working capital.

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Average number of days

To analyze VF Corporation's activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- The trend in VF Corporation's DOH shows an increase from 88.67 days as of March 31, 2021, to 134.33 days as of March 31, 2025.
- A higher DOH indicates that VF Corporation is holding onto its inventory for a longer period before selling it. This could signal potential issues such as slow-moving inventory or overstocking.

2. Days of Sales Outstanding (DSO):
- VF Corporation's DSO fluctuated over the period, with a decrease from 51.28 days as of March 31, 2021, to 44.56 days as of March 31, 2024, followed by an increase to 50.75 days as of March 31, 2025.
- A higher DSO implies a longer time taken by customers to pay for their purchases, which can impact the company's cash flow and liquidity.

3. Number of Days of Payables:
- The trend in VF Corporation's Number of Days of Payables increased from 38.68 days as of March 31, 2021, to 65.19 days as of March 31, 2025.
- A higher number of days of payables suggests that VF Corporation is taking longer to pay its suppliers, which may indicate liquidity issues or strained supplier relationships.

Overall, VF Corporation's activity ratios indicate potential challenges in managing inventory levels, collecting receivables, and managing payables effectively. Further analysis of the underlying causes of these trends is recommended to address any operational inefficiencies and improve the company's working capital management.

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Long-term

VF Corporation's long-term activity ratios show an improving trend over the years. The Fixed Asset Turnover ratio, which measures how efficiently the company generates sales from its fixed assets, has increased from 3.77 in 2021 to 5.17 in 2022, and then slightly decreased to 5.02 in 2023. Unfortunately, data for the following years are not available for analysis.

In contrast, the Total Asset Turnover ratio, which indicates how effectively the company utilizes all its assets to generate revenue, has been consistently increasing from 0.67 in 2021 to 1.01 in 2025. This suggests that VF Corporation has been more successful in generating revenue relative to its total assets over the years.

Overall, the improvement in both the Fixed Asset Turnover and Total Asset Turnover ratios indicates that VF Corporation has been utilizing its assets more efficiently to generate sales, which is a positive sign of operational efficiency and effective asset management.