VF Corporation (VFC)

Inventory turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cost of revenue (ttm)	US$ in thousands	10,257,210	9,872,860	10,113,060	10,651,550	8,576,980	9,034,740	8,959,500	8,387,110	10,358,850	10,194,620	9,832,000	9,504,710	8,845,950	6,634,080	6,880,000	7,388,020	8,285,390	8,049,890	8,568,380	9,004,320
Inventory	US$ in thousands	1,766,370	2,148,220	2,481,050	2,787,020	2,292,790	2,591,920	2,749,890	2,341,400	1,418,670	1,287,210	1,464,710	1,216,820	1,061,840	1,075,980	1,434,840	1,402,860	1,293,910	1,254,460	1,590,030	1,381,510
Inventory turnover		5.81	4.60	4.08	3.82	3.74	3.49	3.26	3.58	7.30	7.92	6.71	7.81	8.33	6.17	4.79	5.27	6.40	6.42	5.39	6.52

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,257,210K ÷ $1,766,370K
= 5.81

The inventory turnover ratio for VF Corporation has displayed some fluctuations over the time period examined. A high inventory turnover ratio indicates efficient inventory management and suggests that the company is able to sell its products quickly.

In the most recent quarter, ending March 31, 2024, the inventory turnover ratio was 5.81, which was higher than the previous quarter. This suggests that VF Corporation was able to sell its inventory more quickly in Q1 2024. However, compared to the same quarter in the previous year, the ratio was slightly lower.

Looking at the historical trend, inventory turnover ratios have varied between a low of 3.26 in the third quarter of 2022 and a high of 8.33 in the first quarter of 2021. Generally, the inventory turnover ratio has been above 4 across the periods analyzed, which is a positive sign for the company.

It is important for VF Corporation to continue monitoring and managing its inventory effectively to ensure that it maintains a healthy balance between carrying enough inventory to meet demand and avoiding excess stock that could lead to write-downs or obsolescence.

Overall, the inventory turnover ratio analysis suggests that VF Corporation has been effectively managing its inventory levels in recent quarters, though there have been fluctuations. Continued attention to inventory management will be crucial for the company to sustain its operational efficiency.