VF Corporation (VFC)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	10,410,600	10,967,400	10,490,500	8,979,070	9,560,380
Inventory	US$ in thousands	1,766,370	2,292,790	1,418,670	1,061,840	1,293,910
Inventory turnover		5.89	4.78	7.39	8.46	7.39

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $10,410,600K ÷ $1,766,370K
= 5.89

The inventory turnover of VF Corporation has fluctuated over the past five years, with a decreasing trend observed from 2019 to 2021, followed by an increase in 2022 and 2023. The inventory turnover ratio measures the efficiency of inventory management in generating sales during a specific period.

A higher inventory turnover ratio indicates that the company is selling its inventory more rapidly, which can be a positive sign of effective inventory management and sales strategy. Conversely, a lower ratio may suggest inefficiencies in inventory management, excess inventory levels, or potential challenges in selling products.

VF Corporation's inventory turnover ratio was the lowest in 2021 at 4.78, indicating a slower turnover of inventory compared to the other years. However, there was a significant improvement in 2022 with a ratio of 7.39, signifying a notable increase in the rate at which the company is selling its inventory. This trend continued in 2023 with a further increase to 8.46, suggesting even better efficiency in managing inventory turnover.

Overall, the inventory turnover for VF Corporation has exhibited variability over the years, but the recent upward trend in the ratio indicates an improvement in inventory management efficiency and the potential for increased sales. It is essential for the company to continue monitoring and optimizing its inventory turnover to enhance operational efficiency and profitability.