VF Corporation (VFC)

Days of inventory on hand (DOH)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Inventory turnover		2.84	2.41	3.80	4.12	3.63
DOH	days	128.50	151.72	96.13	88.67	100.69

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.84
= 128.50

The days of inventory on hand (DOH) for VF Corporation have fluctuated over the past five years. In particular, there was a notable increase in DOH from 2022 to 2023, where it reached its peak at 76.31 days, indicating that the company held inventory for a longer period before selling it. This may suggest potential inefficiencies in inventory management during that period.

However, in the subsequent years, VF Corporation managed to effectively reduce its DOH, with significant improvements in 2023 and 2024 compared to the peak in 2023. By lowering the DOH, the company was able to streamline its inventory turnover process and reduce the amount of time inventory was held before being sold. This improvement could result in lower costs associated with holding excess inventory and a more efficient use of working capital.

Overall, the trend of decreasing DOH over the past two years suggests that VF Corporation has been actively working on optimizing its inventory management practices, which can positively impact the company's financial performance and profitability.