VF Corporation (VFC)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		5.55	4.86	4.89	6.04	4.71	4.20	3.82	3.74	3.49	3.26	3.58	7.30	7.92	6.71	7.81	8.33	6.17	4.79	5.27	6.40
DOH	days	65.81	75.05	74.66	60.42	77.42	86.81	95.50	97.57	104.71	112.03	101.90	49.99	46.09	54.38	46.73	43.81	59.20	76.12	69.31	57.00

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.55
= 65.81

The days of inventory on hand (DOH) for VF Corporation has fluctuated over the past few years, indicating changes in inventory management efficiency.

From March 31, 2020 to June 30, 2020, the DOH increased from 57.00 days to 69.31 days, suggesting a longer period of time required to sell inventory. Subsequently, there was a further increase to 76.12 days by September 30, 2020, which could indicate potential issues related to inventory control or demand forecasting.

However, from December 31, 2020 to March 31, 2021, there was a significant decrease in DOH to 43.81 days, indicating an improvement in inventory turnover efficiency. This trend continued into June 30, 2021 (46.73 days) and September 30, 2021 (54.38 days), demonstrating better inventory management practices during this period.

By December 31, 2021, the DOH decreased further to 46.09 days, although there was an increase in the following quarters up to June 30, 2022, reaching a peak of 101.90 days. This sharp increase in DOH could imply potential inventory issues, such as overstocking or slow-moving inventory.

Subsequently, there was a slight decline in DOH by September 30, 2022 and December 31, 2022, but it remained elevated at 104.71 days and 97.57 days, respectively. This indicates that efforts to optimize inventory levels may have started but were not fully effective during this period.

From March 31, 2023 to December 31, 2024, the DOH fluctuated between 60.42 days and 75.05 days, suggesting ongoing efforts to fine-tune inventory management processes. The decrease in DOH towards the end of 2024 (65.81 days) may indicate improvements in efficiency.

Overall, a high DOH value suggests longer periods of inventory holding, which can tie up capital and increase carrying costs. Analyzing DOH trends can help evaluate the effectiveness of inventory management strategies and assess operational efficiency within VF Corporation.