VF Corporation (VFC)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,420,830 | 5,017,440 | 5,515,800 | 5,386,390 | 4,370,780 |
| Inventory | US$ in thousands | 1,627,020 | 1,766,370 | 2,292,790 | 1,418,670 | 1,061,840 |
| Inventory turnover | 2.72 | 2.84 | 2.41 | 3.80 | 4.12 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,420,830K ÷ $1,627,020K
= 2.72
VF Corporation's inventory turnover has shown a declining trend over the past five years, indicating a decreasing efficiency in managing inventory. The ratio decreased from 4.12 in March 2021 to 2.72 in March 2025. This signifies that the company took longer to sell its inventory in recent years. A lower inventory turnover can lead to increased carrying costs and the risk of obsolescence.
It is important for VF Corporation to closely monitor and optimize its inventory management processes to improve efficiency and reduce excess inventory levels. This may involve implementing better demand forecasting, tightening inventory controls, and potentially reassessing product lines or distribution strategies to enhance inventory turnover. Addressing these challenges can help the company enhance its liquidity, reduce costs, and improve overall profitability.
Peer comparison
Mar 31, 2025