VF Corporation (VFC)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	5,017,440	5,515,800	5,386,390	4,370,780	4,690,520
Payables	US$ in thousands	817,128	936,319	562,992	463,208	407,021
Payables turnover		6.14	5.89	9.57	9.44	11.52

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,017,440K ÷ $817,128K
= 6.14

The payables turnover ratio for VF Corporation has shown a trend of fluctuation over the past five years, ranging from a high of 23.49 in 2020 to a low of 11.71 in 2023. In the most recent fiscal year ending March 31, 2024, the payables turnover ratio improved to 12.74, indicating that VF Corporation is taking slightly less time to pay its suppliers compared to the prior year.

A higher payables turnover ratio generally suggests that a company is efficiently managing its accounts payable by paying its suppliers more quickly. On the other hand, a lower ratio may signify a longer payment period and potentially strained supplier relationships. In this context, VF Corporation's payables turnover ratios over the years reflect variability in its payment management practices.

It is essential for VF Corporation to carefully monitor its payables turnover ratio to ensure a balance between timely payments and maintaining positive relationships with its suppliers. An increasing trend in the payables turnover ratio may signal improved cash flow management, while a decreasing trend may necessitate a review of payment policies and liquidity management strategies.