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 7,499,160 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
= $7,499,160K ÷ $—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.