VF Corporation (VFC)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	9,642,930	9,877,750	10,004,120	10,280,410	10,459,450	10,820,470	11,390,860	11,437,220	11,612,480	11,697,530	11,791,240	11,908,880	11,841,840	11,599,850	10,947,010	10,357,090	9,238,820	8,758,570	9,171,780	9,956,730
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	2,224,210	2,292,890	2,314,620	2,225,700	2,201,290	2,235,320	2,288,830	2,352,240	2,391,520	2,443,170	2,450,310	955,845	933,990	957,309
Fixed asset turnover		—	—	—	—	—	—	5.12	4.99	5.02	5.26	5.36	5.33	5.17	4.93	4.58	4.24	3.77	9.16	9.82	10.40

March 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,642,930K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. It indicates how efficiently the company is utilizing its fixed assets to generate sales.

Analyzing VF Corporation's fixed asset turnover over the past few years reveals a declining trend. From June 30, 2020, where the ratio was at a high of 10.40, the ratio steadily decreased to 4.24 on June 30, 2021, reflecting a significant reduction in the efficiency of fixed asset utilization for revenue generation during this period.

Subsequently, there was a slight improvement in the fixed asset turnover ratio, reaching 5.36 on September 30, 2022. This improvement suggests that VF Corporation may have made some adjustments to enhance the utilization of its fixed assets to generate sales.

However, the ratio fluctuated around this level over the following quarters, with minor variations seen up to March 31, 2025. The consistency in the ratio around the 5.00 mark indicates VF Corporation's ability to maintain a moderate level of efficiency in utilizing its fixed assets for revenue generation during this period.

It is important for VF Corporation to carefully monitor its fixed asset turnover ratio and take appropriate measures to optimize the utilization of fixed assets to enhance revenue generation efficiency in the future.