VF Corporation (VFC)

Days of sales outstanding (DSO)

Mar 31, 2025 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
Receivables turnover 7.30 7.35 5.50 9.71 8.19 8.23 6.02 9.42 7.21 7.47 6.43 9.53 8.07 7.75 6.12 9.09 7.12 6.20 5.71 10.65
DSO days 50.03 49.64 66.41 37.59 44.54 44.33 60.66 38.75 50.61 48.83 56.79 38.30 45.24 47.07 59.59 40.13 51.28 58.82 63.93 34.28

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.30
= 50.03

The Days of Sales Outstanding (DSO) metric for VF Corporation, a measure of how long it takes for the company to collect payments from its customers, has displayed some fluctuations over the past years. Analyzing the data provided, we observe that the DSO stood at 34.28 days on June 30, 2020, showcasing an efficient receivables collection process.

However, by September 30, 2020, the DSO increased significantly to 63.93 days, indicating potential challenges in collecting payments from customers within the expected timeframe. This could be a concerning trend as a high DSO value may lead to cash flow issues and impact liquidity.

Subsequently, there was a slight improvement in the DSO by the end of December 31, 2020, when it decreased to 58.82 days. The trend continued with fluctuations in the following periods, reaching a low of 37.57 days on June 30, 2024, suggesting improvements in the company's accounts receivable management.

However, the DSO increased to 66.38 days by September 30, 2024, possibly indicating a delay in customer payments or changes in the company's credit policies. Monitoring such changes in DSO is essential for identifying potential risks and opportunities in VF Corporation's revenue collection process.

Overall, VF Corporation should continue to monitor its DSO closely and implement strategies to optimize its accounts receivable management, ensuring a balance between efficient collections and maintaining strong customer relationships.